textile final report 300709

Section – 1: Introduction

1.1 Prelude

Bangladesh export-oriented Readymade Garments (RMG) Manufacturing and Primary Textile (PT) sector with back up support of the Accessory (trimming & packaging) industries, contribute 76 percent to total export-earnings of the country.

The domestic textile industry has made appreciable contribution to the rapid growth of Bangladesh RMG industry. International RMG buyers preferred Bangladesh mainly for two reasons: (a) competitive prices of high volume lower end products and (b) presence of a growing PT industry capable of ensuring sizable supply of inputs to RMG industry. In fact, the value addition of the RMG units using the inputs supplied by the local PT industry is much more as compared to those dependent totally on the imported inputs.

But the export-oriented RMG industry is now at stiff competition because of global trade liberalization under WTO rules and Agreement on Textiles and Clothing (ATC), in the quota free world. It is widely believed that the development of an effective backward linkage along with a well-designed road map for future growth would have provided safeguard measures to retain and expand the Bangladesh Textile and RMG export in the quota free world.

Development of the textiles and RMG industries calls for preparation of a pragmatic road map with synchronized strategic action plans in respect of technology, inputs, HRD, quality, productivity, compliances and other trade promotion aspects. Preparation of Road Map essentially requires up-to-date information in respect of past performances to analyze past and present situation and draw out conclusions that would serve as a basis for future courses of action for development of the sector. On the other hand, the issues related to quality, productivity, compliances and cost minimization depend on sustainable supply of skilled manpower to the sector.

A major responsibility to ensure a sustainable supply of skilled manpower is vested on the shoulder of the Department of Textiles (DOT) that came into being in 1977 under the Ministry of Industry and was placed under the Ministry of Textiles in 1978. The DOT runs now 4 Degree Colleges, 6 undergraduate level textile institutes offering Diploma in Textile Engineering and 40 S.S.C. Vocational Institutes offering 10 class

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equivalent vocational education in the area of textile technology & garmenting. These Textile Institutes and Vocational Institutes cover education programs on conventional textile disciplines such as spinning, weaving, knitting, dyeing / printing-finishing and garmenting. The average student intake of each textile institute is 160 per annum (in two shifts) and that of each SSC (Secondary School Certificate) level vocational institutes is 90 per annum. This supply scale is almost droplet to the fast growing need of the manpower of the industry.

At present, DOT is the only formal organization that is producing both operative and supervisory level technical manpower to ensure a sustainable supply of such essentially needed manpower to the faster growing textile and RMG sector of Bangladesh. In the recent past quite a large number of educational & training institutes on S.S.C Vocational Textile, Diploma and Graduation have been established in the private sector without required logistic support including adequate teaching staff. This unplanned growth of the textile education and training facilities in the country will not be helpful for development of human resource required for fast growing textile industry of the country.

At present, there is a serious shortage of reliable statistics / information on the current position of the different sub-sectors of textiles and garment industry for which development program and action plan suffer badly. Under this situation it is felt at macro level (government and stakeholders associations) and at micro-level (industry and business house) to undertake a survey of the textile and RMG industry of the country. The Ministry of Textiles & Jute (MOT & J) prepared an MIS report for FY 2001 & 2002. But the MIS reporting did not continue for the subsequent years and as such the sector is suffering from acute shortage of information. The DOT has established MIS and website to complement the objective of the Ministry’s need in respect of information and database. But lack of information or updated data is acting as a barrier to develop the website as reliable source of information about textile and RMG sector of Bangladesh.

In the backdrop of the situation, the DOT has undertaken this study project “Survey on Bangladesh Textile Industry and to assess the Requirement of Textile Technologists” to update the MIS & Database of DOT with the information suitable for undertaking future strategic plan for the overall development of the RMG Textile sector.

1.2 Objectives of the Survey

The objectives of the Survey have been to:

Update the database of the Textile Sector by the survey data up to 2007-2008 (December 2007) and strengthen the electronic website/portal of DOT making it accessible to the RMG and Textile industries and related business houses;

Assess the requirements of the Textile Technologists and suggest the way to supply them in the shortest possible time. Further, to prepare a MIS report for the Ministry of Textiles for the year 2007-2008 (upto December 2007) covering the textile industries in the public and the private sectors; and

Prepare a series of PT development recommendations to strengthen the supply of inputs to both local and export markets. Also to develop a time-bound action plan, i.e. road map for the implementation of the recommendations made under the survey.

1.3 Scope of the Survey

The scopes of the Survey are:

To take inventory of the Textile Sector through the listing of the industries, along with their installed capacities;

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To conduct field survey to collect data on the capacity, production and the necessity of manpower and update the existing database of the PT industry;

To collect data on the import of required inputs and outputs of textile industry, such as, chips, raw cotton, man-made fibbers, tows, raw silk, yarns (cotton, silk, synthetic/acrylic and mod-acrylic), grey fabric and finished fabrics under cash or back to back L/C, ready made garments etc.;

To collect data on the import of capital machinery of spinning, weaving, knitting, dyeing & printing, common facility machinery, prefabricated structure, spares and accessories, etc;

To estimate domestic consumption of fabrics for different types of wearing apparels and their sources of supply;

To estimate the existing and anticipated demand gap of products and capacity of the sector keeping in view the local and global markets;

To anticipate the technological change needed for Textile industry to effectively face the post-MFA era and find out strategy as to how Bangladesh PTS can gradually attain self-reliance in textile products to meet domestic and export demand of RMG through new capacity creation with upgraded technology;

To suggest how the productivity indicators of PTS, as well as, quality of the products could be improved for making the whole Textile industry locally and globally competitive;

To suggest pragmatic program needed to diversify the PTS product mixes matching with the need of RMG;

To evaluate the manpower presently involved in the Sector and to assess the present institutional capacity for providing technical education and training to the manpower required for Textile industry and anticipate the future need of manpower of the Sector by type of skills;

To assess the training need and develop a comprehensive education and training requirements needed for the Textile Sector of the country;

To formulate PT development recommendations, along with roadmap; To identify inadequacy of the software and hardware of the existing installation of DOT database, and

to undertake remedial actions for making it safer, user-friendly and accessible to all relevant users. The survey results and the recommendations will be discussed in an Open Forum (Seminar)

participated by the related stakeholders’ associations (e.g., BTMA, BKMEA, BGMEA, BSTMPIA, etc.), Forums of Textile Technologists, Academics and Government Officials. The relevant feed-back coming out from the Open Forum will be incorporated for enrichment of the survey outcomes.

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1.4 Methodology Followed

After receiving the work order of the assignment the Survey Team members were mobilised, and the Team Leader briefed them regarding the volume of work of the survey, including the processes to be followed for effectively completing the assignment. Published and unpublished reports, different kinds of literature and statement, list of Textile Mills and Institutions, etc. were collected from the DOT, including list of the concerned stakeholders. Necessary training was given to the Field Enumerators and Supervisors regarding data collection on the basis of data collection questionnaires/formats. Work Plan and data collection questionnaires/formats were prepared, pre-tested and submitted to the DOT for necessary consultation, finalisation and clearance. Upon several discussions with the concerned personnel of the authority, the following Questionnaires/Formats were finally cleared for use in collecting necessary data and information from the mentioned Sub-sectors/entities:

Survey Form-01 : Format for Data Collection from Spinning Mills

Survey Form-02 : Format for Data Collection from Large Weaving Mills

Survey Form-03 : Format for Data Collection from Composite Mills

Survey Form-04 : Format for Data Collection from Specialised Textile & Power Loom

Survey Form-05 : Format for Data Collection from Knitting Industry

Survey Form-06 : Format for Data Collection from Terry-Towel & Linen Manufacturing Industries

Survey Form-07 : Format for Data Collection from Dyeing, Printing & Finishing Industries (Mechanised)

Survey Form-08 : Format for Data Collection from Dyeing Printing & Finishing Industries (Semi-

mechanised)

Survey Form-09 : Format for Data Collection from Synthetic Yarn Manufacturing Industries

Survey Form-10 : Format for Data Collection from Silk Industries

Survey Form-11 : Format for Data Collection from Sewing Thread Manufacturing Industries

Survey Form-12 : Format for Data Collection from Sweater Industries

Survey Form-13 : Format for Data Collection from Textile Colleges, Textile Diploma Institutes and

Textile Training Institutions

Survey Form-14 : Format for Data Collection from:

(i) Association of various Textile Industries

(ii) Head Office (HO) of Govt., Autonomous Organisations, Buying Houses, etc.

Survey Form-15 : Format for Data Collection from Ready Made Garments (RMG) Industries

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1.5 Indicators/Variables Considered in the Survey of Textile Sub-sectors

In the survey, the following major indicators/variables were considered:

a) Survey entity identification matters;b) Survey entity’s:1. Ownership pattern;2. Installed capacity and capacity utilization;3. Investment in land, building and capital machinery;4. Import of capital machinery and raw materials;5. Production;6. Export;7. Manpower and employment of Textile Technologists8. Requirement for Textile Technologists;9. Shortfall in production;10. Operational status of the entities11. Entity expansion plan

1.6 Summary Status of the Survey Coverage

Our survey covered 7,542 textile mills and other textile related organizations which includes 4,519 export-oriented Garments and 17 other organizations. Moreover, there are 311 Buying Houses, 77 Textile Institutes/Colleges/Universities offering Textile Degree, Diploma and Certificates. All these entities were surveyed, and out of these entities, data has been collected from 6,025 entities and 1,517 entities were found closed. Table – 1.1 below gives detailed picture.

Table – 1.1: Sub-Sector Wise Survey Scenario

Sl. No.

Sector No. of Mills No. of Mills (data

collected)

Percentage

No. of closed Mills

Percentage Total no. & % of Mills Covered

under the SurveyA. Public Sector Mills: i. Mills under Bangladesh

Textile Mills Corporation (BTMC)

24 20 83 4 17 24 (100%)

Sub-total: 24 20 83 4 17 24 (100%)

B. Private Sector Mills: i. Spinning Mills 308 281 91 27 9 308 (100%)ii. Weaving (Large, Medium

& Small), including Composite

655 581 89 74 11 655 (100%)

iii. Composite Textile Mills 31 29 94 2 6 31 (100%)iv. Specialized

Textiles/Power Loom Units; (Many of them are BTMA & BKMEA Members)

412 409 99 3 1 412 (100%)

v. Knitting Industry (Most of them are members of BKMEA)

605 572 95 33 5 605 (100%)

vi. Terry-Towel Linen Manufacturing Industry

64 61 95 3 5 64 (100%)

vii. Dyeing, Printing & Finishing (Mechanized)

257 250 97 7 3 257(100%)

viii. Dyeing, Printing & Finishing (Semi-mechanized)

95 94 99 1 1 95 (100%)

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Sl. No.

Sector No. of Mills No. of Mills (data

collected)

Percentage

No. of closed Mills

Percentage Total no. & % of Mills Covered

under the Surveyix Synthetic Yarn

Manufacturing 13 13 100 0 0 13 (100%)

x. Silk Industry 108 80 74 28 26 108 (100%)xi. Sewing Thread

Manufacturing Units46 46 100 0 0 46 (100%)

Sub-total: 2594 2416 93 178 7 2594 (100%)C. Export-oriented

Garments Factories:

i. Export-oriented Garments Factories (Woven)

2,417 1621 67 796 33 2417 (100%)

ii. Export-oriented Garments Factories (Knit)

1,420 1019 72 401 28 1,420 (100%)

iii. Sweater Industry 682 544 80 138 20 682 (100%) Sub-total: 4,519 3184 70 1,335 30 4519 (100%)

Total No. of Mills/Factories:

7,137 5,620 79 1,517 21 7137 (100%)

D. Textile Institutes/Colleges/ Universities offering Textile Degree, Diploma and Certificate

No. of Textile

Institutions

Data Collected

Percentage of data collected

Textile Institutions

Closed (Data not given)

Percentage of

Institutions Closed

Total no. of Textile

Institutions Surveyed

i. Under Public Sector 51 51 100 0 0 51 (100%)ii. Under Private Sector 26 26 100 0 0 26 (100%) Sub-total: 77 77 100 0 0 77 (100%)

E. Buying Houses No. of Buying Houses

Data Collected

Percentage of data

collected

Buying Houses Closed (Data not

given)

Percentage of Buying Houses Closed

Total no. of Buying Houses Surveyed

311 311 100 0 0 311 (100%)i. Other Organizations 21 21 100 0 0 21 (100%)

Sub-total: 332 332 100 0 0 332 (100%)

Grand Total: 7,546 6029 80 1,517 20 7546 (100%)

1.7 Obstacles, Hindrances and Problems Faced

The Proposal for the Survey of Textile Sector was submitted to DOT on 27 September 2007, but the process of evaluation of the Proposal was finalised after long 6 months. If the evaluation process would not take such long time, the survey work could be started in the beginning of January, 2008. In that case, dry season could be effectively utilised for collecting necessary data of the survey from the field.

The DOT issued the Work Order for the Survey on 13 March 2008, whereas, the Consortium got money as the 1st instalment, that too only 10 percent of the total money on 01 July 2008, which put the Consortium in to tremendous financial hardship.

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The Consortium has been conducting the survey work since the Work Order amid many interruptions, such as, unfavourable environment during summer, unwillingness of authorities of different mills/factories showing different causes in providing necessary data and information.

Inspite of issuance of request letters by the Secretary of the MOT, Director, DOT, Chairmen of BGMEA, BTMEA, BKMEA, etc; many authorities of the concerned mills/factories at the first approach of our Enumerators’ and Supervisors’ repeated approach for data collection declined to supply the same, and as a result needed repeated request for collection of data from those mills/factories, which prolonged data collection time.

Apart from the above reasons, a large number of mills/factories under different sub-sectors shifted their entities from original locations to un-known places/locations.

The above said causes are the main hindrances on the way of completing the survey work within the stipulated time (as mentioned in the work order for the survey of Textile Sectors).

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2.1 IntroductionDatabases have been prepared upon collection of necessary and relevant data from the following sources:

a) Relevant documents collected from Bangladesh Bank, Bureau of Statistics, EPB, BGMEA, relevant study reports etc.;

b) Different Associations under Textile Sector, DOT and Universities; andc) Field survey (through visiting Mills/Factories, Buying Houses and Institutions).

2.1.1 Data Collection from related organizations including relevant study reports

All national data on production, export, import, consumption etc., relevant to textile sector/sub-sectors have been collected from Bangladesh Bank, Bureau of Statistics, EPB, relevant study reports etc.

2.1.2 Data Collection from different Associations under Textile Sector, DOT and Universities

Sectoral macro data, including name, address, contact no., installed capacity, production etc. of member mills/factories have been collected from the following secondary sources:

1. Bangladesh Textile Mills and Exporters Association (BTMEA)2. Bangladesh Garments Manufacturers and Exporters Association (BGMEA)3. Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA)4. Specialized Textiles & Power Loom Manufacturers and Exporters Association5. Terry-Towel Linen Manufacturers and Exporters Association6. Bangladesh Dyed Yarn Exporters Association (BDYEA)

2.1.3 Data Collection from Field survey (through visiting Mills/Factories, Buying Houses and Institutions).

Unit-wise detailed data and information were collected from individual units under the following sub-sectors, with the help of sub-sector specific questionnaires:

(i) Public Sector Textile Mills: Bangladesh Textile Mills Corporation (BTMC)(ii) Private Sector Textile Mills:

Textile Mills (Spinning and Weaving);Specialized Textiles & Power Loom Industries;Knitting Industries;Terry-Towel Linen Manufacturing Industries;Dyeing & Finishing (Mechanized and Semi-mechanized, piece dyeing & yarn dyeing) Industries;Synthetic Yarn Manufacturing (Tow to tops and tops to yarn) Industries;

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Silk Industries;Sewing Thread Manufacturing Industries; Sweater Factories; andBuying Houses.

For overall up-gradation of database and analysis of the Sectoral issues, the survey also included Readymade Garments.

Updated Macro Database on different Components of the Textile Sub-sectors, Derived from both Primary (Field Survey) and Secondary Sources

2.2 Investment

Summary status of investment under different textile sub-sectors has been given in Table – 2.1 below. Investment comprises of investment in land, building, capital machinery and other tangible assets. It may be seen from the Table that, the industrial entities surveyed have made a total investment of Tk. 406299.93 million. Highest investment has been made in Spinning Tk 211,282.28 then in Knitting Tk 80,055.55 million and in Processing Tk 48,008.00 million respectively.

In this context, it may be noted that, not all industrial units surveyed provided investment figures. Say for instance, 106 Spinning Mills, 259 Weaving Mills, 22 Composite Textile Mills, 90 Mechanized Dyeing, Printing and Finishing Mills, 25 Semi-mechanized Dyeing, Printing and Finishing Mills, 60 Power Loom Mills, 250 Knitting Industries and 6 Terry Towel Industries gave investment figures, and others not, and hence, the total investment figures under these Sub-sectors have been estimated on the basis of the investment made by entities who provided us the data as mentioned above.

For more details, Table – 2.1 below and subsequent section may be consulted.

Table – 2.1: Investment (Amount in Million Tk.)

SL. No. Name Land Building Machinery Other Assets Total

1 Spinning Industry 25818.90 30169.12 147102.52 8191.74 211282.28

2 Large Weaving Mills 2853.13 6234.76 17852.16 3238.96 30179.00 3 Composite Mills 474.15 3473.95 23317.95 1323.95 28590.00

4 Specialized Textile and Power Loom 231.17 318.80 1829.18 820.85 3200.00

5 Knitting Industry 9467.12 20249.36 46686.86 3652.21 80055.55

6 Terry Towel Linen Manufacturing Industry 30.22 80.24 1419.01 608.54 2138.00

7 Dyeing Printing Finishing Industry (Mechanized)

4085.45 12569.00 21643.84 3690.70 41989.00

8 Dyeing Printing Finishing Industry (Semi-Mechanized)

497.90 288.41 4064.34 1168.35 6019.00

9 Synthetic Yarn Manufacturing 178.95 200.54 2136.31 331.32 2847.11

Total: 43636.99 73584.17 266052.16 23026.61 406299.93

2.3 Machinery and Installed Capacity

Table – 2.2 below exhibits summary status of the inventory of the Textile Sector’s Mills/Industries under different Sub-sectors, including their installed capacity. Yearly yarn production capacity is 1478 m.kg and weaving capacity 2029 m.meters. For getting sub-sectoral detailed ideas, the following Table and subsequent section may be consulted.

Table–2.2: Structure of Textile Industry Showing Number of Units, Machine & Production Capacity (As of June 2008)

Sub-sector

Machines Installed machine Numbers

Unit Production Capacity/Day

Production Capacity / Year (in million)

Spinning Mills

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Public sector Spindle 414,240 Kg 109,030 37.07 Private sector Spindle 7,459,138 Kg 3,669,523 1,247.64 Sub-total: 7,873,378 kg 3,778,553 1,285 Public sector Rotor 19,312 kg 52,381 17.81 Private sector Rotor 194,193 kg 515,370 175.23 Sub-total: 213,505 kg 567,751 193 Total kg 4,346,304 1,477.74 Synthetic Yarn Manufacturing Industry Spindle 650,692 Kg 343,417 116.76 Rotor 7,532 Kg 24,458 8.32 Total: 658,224 Kg 367,875 125.08 Weaving mill (Medium & large) Power Loom 20,987 Meter 1,789,598 608.46 Rapier loom 13,762 Meter 2,752,746 935.93 Air Jet 1,382 Meter 551,784 187.61 Sub-total (a): 36,131 Meter 5,094,128 1,732.00 Specialized Textile and Power Loom

Power Loom (Shuttle) 9,080 640,969 217.93 Rapier Loom 2,205 Meter 203,460 69.18 Air Jet 68 Meter 29,000 9.86 Sub-total (b): 11,353 Meter 873,429 296.97 Total (a+b) 47,484 Meter 5,967,557 2,028.97 Dyeing, Printing & Finishing Industry: Mechanized Jet & Winch Dyeing 1,750 Eqv. Meter 9,376,752 3,188.10 Sub-total: 1,750 Eqv. Meter 9,376,752 3,188.10 Jigger Dyeing 1,304 Meter 836,386 284.37 Dyeing Machine 484 Eqv. Meter 3,186,696 1,083.48 Sub-total: 1,990 Meter 4,023,082 1,367.85 Flat Bed Screen Printing 178 Meter 233,026 79.23 Screen Printing 1,212 Meter 7,653 2.60 Roller Printing 14 Meter 87,768 29.84 Rotor Screen Printing 24 Meter 271,100 92.17 Sub-total: 5,206 Meter 8,645,711 2,939.54

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Semi-mechanized: Hand-driven Jigger 961 Meter 540,991 183.94 Hand-driven Roller Printing 520 Meter 541,827 184.22 Winch Dyeing 53 Eqv. Meter 318,000 108.12 Sub-total: 1,534 Meter 1,400,818 476.28 Total: 8,490 19,423,281 6,603.92 Terry Towel Industry Terry Loom/Power Loom 1,986 Meter 115,431 39.25 Sub-total: 1,986 115,431 39.25 Sweater Factory

Hand-driven Flat Knitting Machine

222,472 Pcs 1,533,354 521.34

Jachard Knitting 30,333 Pcs 902,691 306.91 Total: 252,805 Pcs 2,436,045 828.26 Export-oriented Readymade Garments: Woven Garments

Sewing Machine 391,723 Pcs 10,629,548 3,614.05 Sub-Total: 391,723 Pcs 10,629,548 3,614.05 Knit Garments

Over lock 148,448 Pcs 16,393,674 5,573.85 Sub-Total: 148,448 Pcs 16,393,674 5,573.85 Knitting & Knit-dyeing Circular Knitting 11,651 Eqv. Meter 17,051,052 5,797.36 Winch Dyeing Machine 925 Eqv. Meter 4,618,500 1,570.29 Jet Dyeing 343 Eqv. Meter 945,000 321.30 Sub-total: 12,919 Eqv. Meter 22,614,552 7,688.95 Silk Industry Power Loom 793 Meter 47,042 15.99 Sub-total: 793 Meter 47,042 15.99 Sewing Thread Manufacturing Industry Sewing and other Machines 1,370 Kg 158,063 53.74

Sub-total: 1,370 158,063 53.74

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2.4 Import of Raw Materials and Machinery

2.4.1 Payments against Import of Textile Raw Materials and Machinery

Updated Macro Database on Import of Textile-related Raw Materials and Machinery, Derived from Secondary Source

Table – 2.3 below shows summary of payment of import of textile raw materials and machinery. This Table gives statistics of last 06 years beginning from 2002-03 and ending in 2007-08. It may be seen from the Table that, total import payment in 2002-03 was Tk. 1,16,521.54 million, which stood at Tk. 149,503.99 million (28% net increase) in 2003-04. During 2004-05, import payment stood at Tk. 190,845.96 million (again 28% net increase), which stood at Tk. 242,518.96 in 2005-06. During 2006-07, import payment stood at Tk. 282,699.04 (17% net increase), which stood at Tk. 313,706.16 in 2007-08.

However, it is also evidenced that, from 2006-07, the import has been increasing at a decreasing rate, which stood at 11% increase during 2007-08 compared to 2006-07. However, average annual increase in the import of textile raw materials and machinery during last 5 years have been 22%, or in other words, during last 5 years, import has increased by more than double. But, the very point of ‘increasing at a decreasing rate’ indicates that, if this sector is not reared up properly, it may lose its present momentum substantially.

Table – 2.3: Payments against Import of Textile Raw Materials and Capital Machinery(Taka in Thousand)

Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Raw Materials:Silk:Silk-warm cocoons suitable for reeling. 62569 9769 17912 35012 35556 37547Raw silk (not thrown). 212014 284398 268685 273728 501309 568952Silk waste (including cocoons unsuitable for reeling, yarn waste and garnetted stock).

10742 16011 16873 15573 35403 7539

Silk yarn (other than yarn spun from silk waste) not put up for retail sale.

961 8403 1432 3954 2912 5287

Yarn spun from silk waste, not put up for retail sale

823 14098 1954 0 30171 2121

Silk yarn and yarn spun from silk waste, put up for retail sale; silk-warm gut.

31190 181274 244133 3211 9193 22756

Woven fabrics of silk or of silk waste. 579658 442680 300245 94212 98575 151837Sub-Total: 897967 956633 851234 425690 713119 796039

Wool, fine for course animal hair: Horse-hair Yarn and Woven Fabrics:Wool, not carded or combed. 28999 32867 17792 63894 21974 54604

Fine or coarse animal hair, not carded or combed.

0 1953 0 18509 2771 635

Waste of wool or of fine or coarse animal hair, including yarn waste but excluding garnetted stock.

0 0 0 3060 11156 0

Garnetted stock of wool or of fine or coarse animal hair

374 479 4530 13134 29268 2263

Wool and fine or coarse animal hair, carded or combed (including combed wool in fragments).

14988 1559 6155 9042 1006 9607

Yarn of carded wool, not put up for retail sale.

28625 107099 33152 85810 165424 105507

Yarn of combed wool, not put up for retail sale

11369 8854 17740 10338 51067 47197

Yarn of fine animal hair (carded or combed), not put up for retail sale.

0 348 23532 8602 1517 3846

Yarn of wool or fine animal hair, put up for retail sale.

67631 89761 92946 136615 28325 11106

Yarn of coarse animal hair or of horse hair (including gimped horsehair yarn) whether

4550 1800 0 5892 2893 5367

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Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08or not put up for retail sale.Woven fabrics of carded wool or of carded fine animal hair.

945841 843908 983442 1113673 933621 817673

Woven fabrics of combed wool or of combed fine animal hair.

114835 6818 31587 32002 19430 9498

Woven fabrics of coarse animal hair or of horsehair.

20287 0 1119 1431 0 524

Sub-total: 1237499 1095446 1211996 1502002 1268452 1067827Cotton:Cotton not carded orcombed.

22335304 33683828 40103759 48875272 58288378 81614034

Cotton waste (including yarn waste and garnetted stock).

100032 73978 220366 520480 256918 283147

Cotton, carded or combed. 308213 602234 638195 474103 809500 1272914Cotton sewing thread, whether or not put up for retail sale.

329316 469120 412813 812545 1155275 1185645

Cotton yarn (other than sewing thread), containing 85% or more by weight of cotton, not put up for retail sale.

6644704 7463323 9663868 14595410 17008505 22294098

Cotton yarn (other than sewing thread), less than 85% by weight of cotton, not put up for retail sale.

1244154 777341 801413 905772 960644 1475094

Cotton yarn (other than sewing thread) put up for retail sale.

144923 141405 368878 526721 674951 862518

Woven fabrics of cotton, containing 85% or more by weight of cotton,weighing not more than 200 gm/m2 .

12168630 15925134 21491455 26123974 29387473 27687591

Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200 gm/m2 .

4298510 5251200 7215078 13285022 16889310 18017270

Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200 gm/m2

2228937 1703502 1664994 2171138 2785325 3413546

Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200 gm/m2 .

1400643 1496995 1479876 1695507 1300301 1372169

Other woven fabrics of cotton. 4868898 6209038 8021618 10145272 11887662 11618931Sub-total: 56072264 73797098 92082313 120131216 141404242 171096957

Other Vegetable Textile Fabrics; paper yarn and woven fabrics of paper yarn:Flax, raw or processed but not spun; flax tow and waste (including yarn waste and garnetted stock).

4267 10463 41655 83342 10545 19839

True hemp (Cannabis sativa L.), raw or processed but not spun; tow and waste of true

0 205 0 3787 1699 2735

Jute and other textile bast fibres (excluding flax, true hemp and ramie), raw or processed but not spun; tow and waste of these fibres (including yarn waste and garnetted stock).

5635 7864 326 8426 5061 20173

Coconut, abaca, ramie and other vegetable textile fibres.

4474 49144 215217 1359 1397 47971

Flax yarn 582 0 0 0 0 0Yarn of jute or of other textile bast fibres of heading 5303.

5454 2888 3399 38028 0 3582

Yarn of other vegetables textile fibres; paper yarn.

18132 13196 18041 5881 1378 4310

Woven fabrics of flax. 90110 79147 81520 136788 31233 117937Woven fabrics of jute or of other textile bast fibres of heading 5303.

522 24499 64361 90236 28995 1482

Woven fabrics of other 55520 104164 368488 219499 102280 11161

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Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08vegetable textile fibres;woven fabrics of paper yarn.Sub-total: 184696 291570 783007 587346 182588 229190Man-made Filaments; stripe and the like of man-made textile materials:Sewing thread of man-made filaments, whether or not put up for retail sale.

624521 1094519 1275580 2106101 2320263 2916196

Synthetic filament yarn (other than sewing thread),

2089193 2831335 3861756 4492734 5000855 6306469

Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex.

424697 358906 384357 520308 1022534 836575

Synthetic monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm;

68598 80392 66348 73465 86284 75815

Artificial monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm;

6938 23271 0 0 13373 85849

Man-made filament yarn (other than sewing thread), put up for retail sale.

5777 1976 0 5091 5605 3641

Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404.

2443883 3056159 4119285 5586609 5811240 5573262

Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405.

395200 372066 603718 998903 1036153 985743

Sub-total: 6058807 7818624 10311044 13783211 15296307 16783550Man-made Staple Fibers:Synthetic filament tow 316265 399170 797357 349910 1089172 1162958Artificial filament tow 572464 716461 865446 1362721 1308009 1560786Synthetic staple fibres, not carded, combed or otherwise processed for spinning.

1102534 1862474 2426996 2775711 3421348 3572154

Artificial staple fibres, not carded, combed or otherwise processed for spinning

213809 119038 282181 420670 574852 974428

Waste (including noils, yarn waste and garnetted stock) of man-made fibres.

19699 12663 20441 26205 72983 124546

Synthetic staple fibres, carded, combed or otherwise processed for spinning

155937 263366 204819 127860 210117 156120

Artificial staple fibres, carded, combed or otherwise processed for spinning.

8828 17336 8275 9668 36633 477

Sewing thread of man-made staple fibres, whether or not put up for retail sale.

471428 658406 527024 893010 1045867 1103668

Yarn (other than sewing thread) of synthetic staplefibres, not put up for retail sale.

3704142 5366773 6658086 8953859 11317740 9277147

Yarn (other than sewing thread) of artificial staple fibres, not put up for retail sale.

90548 95608 306963 280782 260081 412764

Yarn (other than sewing thread) of man-made staple

22719 67553 137408 135669 215973 238772

Woven fabrics of synthetic staple fibres, containing 85% or more by weight of synthetic staple fibres.

3281251 4984074 6037229 7199708 6382347 5792385

Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170 gm/m2.

1235662 2205470 2304345 2472868 2367290 2050555

Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight exceeding 170 gm/m2

1794925 2066209 1981809 2051497 2047268 1836507

Other woven fabrics of synthetic staple 566424 897844 1430334 901366 893441 747688

14

Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08fibres.Woven fabrics of Artificial staple fibres. 676879 1199637 1315807 1386280 941426 939710Sub-total: 14233514 20932082 25304520 29347784 32184547 29950665

Wadding, felt and non-woven, special yarns, twine, cordage, ropes, cables and articles:Wadding of textile materials and articles. 22070 35966 42241 54070 77127 85603Felt, whether or not impregnated, coated, covered or animated.

5379 4050 11661 8451 9061 9292

Non woven, whether or not impregnated, coated, covered or laminated.

113523 136002 130634 177285 148328 174237

Rubber thread and cord, textile covered; textile yarn and strip.

77145 66424 40100 16760 3647 19655

Metalised yarn, whether or not gimped, being textile yarn or strip.

96104 132620 129803 130030 124881 310877

Gimped yarn and strip. 30682 25047 25482 72853 36379 1088731Twine, cordage, ropes and cables, whether or not plaited or braided

232305 101791 173709 134779 223754 127648

Knotted netting of twine, cordage or rope. 3689 4196 3636 278 14756 6749Articles of yarn, strip. 39880 26079 410 11528 1103 16762Sub-total: 620777 532175 557676 606034 639036 1839554Carpets and other textile floor coverings, knotted, whether or not made up.

1273 2357 5390 8055 1088 4435

Carpets and other textile floor coverings, woven.

21145 18010 13759 17041 22702 27742

Carpets and other textile floor coverings, tufted.

32546 24680 27535 27175 28705 30560

Carpets and other textile floor coverings, of felt.

10054 2463 9913 6744 12819 9202

Other Carpets and other textile floor coverings whether or not made up.

14513 6555 7596 5782 5112 13791

Sub-total: 79631 54065 64193 64797 70426 85730

Special Woven Fabrics, tufted textile fabrics, lace, tapestries, trimmings and embroidery:Woven pile fabrics and chenille fabrics. 1490146 1484884 2211330 2446049 2975594 3029895Terry towelling and similar woven terry fabrics.

118254 129110 104677 167818 117173 49944

Gauze, other than narrow fabrics. 28853 10329 7356 14970 16065 21314Tulles and other net fabrics, not including woven, knitted or crocheted fabrics.

84427 54106 19111 46864 327082 185201

Hand-woven tapestries. 1820 3599 11565 2522 10432 7822

Narrow woven fabrics. 167045 342642 408220 470575 440253 546704Labels, Badges and similar articles of textile materials.

3076513 3382762 4313595 5361152 5509043 5559900

Braids in the piece. 8446 27624 16655 65483 17019 74058Woven fabrics of metal thread. 37010 132940 127202 172082 150770 26349Embroidery in the piece, in strips or in motifs.

11453 134986 282633 530843 54238 106308

Quilted textile products. 17839 8377 73020 58578 29702 35447Sub-total: 5041806 5711359 7575364 9336936 9547371 9358097Impregnated, coated, covered or laminated textile fabrics, textile articles of a kind suitable for industrial use:Textile fabrics coated with gum. 49030 83365 52577 285962 664898 967940Tyre cord fabric 488504 517936 574523 594393 686537 515688Textile fabrics, impregnated, coated, covered or laminated with plastics.

1122609 1079515 1545291 1136573 1362438 1458694

Linoleum, whether or not cut to shape. 6792 0 0 5307 251 0

Textile wall coverings 0 0 1827 18502 0 0Rubberised textile fabrics 18490 35795 91045 109767 122616 222262Textile fabrics otherwise impregnated, coated or covered.

3579 3103 6720 10400 16249 1309

15

Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Textile wicks, woven, plaited or knitted. 8560 14732 13857 11294 18933 13740Textile house keeping and similar textile tubing.

9756 3442 7083 7657 30421 170622

Transmission or conveyor belts. 7790 11776 12680 17962 12118 22836Textile products and articles for technical uses.

575934 518840 649489 860676 183089 268939

Sub-total: 2291044 2268504 2955092 3058493 3097550 3642030Knitted or corded fabrics:Pile fabrics 8662129 9242623 10673990 12160652 14440918 14901221Knitted or crocheted fabrics by weight 5% or more, not exceeding 30 cm.

2822921 2687592 4374665 3119324 3904257 4773668

Knitted or crocheted fabrics not exceeding 30 cm.

116350 2025 34613 451950 434710 315555

Knitted or crocheted fabrics exceeding 30 cm.

10532 32826 19392 128800 145859 390317

Warp knit fabrics. 126304 22463 102655 257378 92108 80688Other knitted or crocheted fabrics. 133216 79776 552926 487938 612846 632532Sub-total: 11871452 12067305 15758241 16606042 19630698 21093981

Articles of apparel and clothing accessories, knitted or crocheted:Men's or boy's overcoats, car coats, caps, cloaks, anoraks (including ski jackets), wind cheaters, wind-jackets, knitted or crocheted.

10408 8851 44453 7920 4858 27130

Women's or girl's overcoats, car coats, caps, cloaks, anoraks (including ski jackets), wind cheaters, wind-jackets, knitted or crocheted.

4338 2891 4323 12843 89 1567

Men's or boy's suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear) knitted or crocheted.

14176 61822 6777 14880 46316 68800

Women's or girl's suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear) knitted or crocheted.

28147 12786 39778 27896 5747 3594

Men's or boy's shirts, knitted or crocheted. 22668 10457 53390 44558 178524 191067Women's or girl's blouses, shirts and shirt-blouses, knittedor crocheted.

163 17413 88767 37254 9448 12766

Men's orboy's underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or crocheted.

0 11109 3635 7455 3610 10591

Women's or girl's slips, petticoats, briefs, panties, nightdresses, payjamas, negliges, bathrobes, dressing gowns and similar articles, knitted or crocheted.

25519 1463 51933 35902 40944 18767

T-shirts, singlets and other vests knitted or crocheted.

72802 76007 477181 28929 119814 116943

Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted.

45548 39815 32423 89038 78500 102008

Baby’s garments and clothing accessories knitted or crocheted.

449923 474979 699958 792605 1183514 506347

Track suits, ski suits and swimwear, knitted and crocheted.

215541 48285 66161 77531 73001 43289

Garments, made up of knitted or crocheted fabrics.

322405 467615 367382 130805 0 66776

Other garments knitted or crocheted. 17651 11586 0 139 26666 0Panty hose, tights, stockings, socks and other hosiery.

5887 32076 57890 535 1249 47923

Gloves, mittens and mitts, knitted or crocheted.

5478 2233 0 0 701 0

Other made up clothing accessories, knitted or crocheted; knitted or crocheted

167249 193278 168802 91052 229506 231279

16

Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08parts of garments or of clothing accessories.Sub-total: 1407903 1472666 2162853 1388342 2002487 1448847Articles of apparel and clothing accessories, not knitted or crocheted:Men's or boy's overcoats, car coats, caps, cloaks, anoraks (including ski jackets), wind cheaters, wind-jackets.

28427 34899 8496 14771 23715 73528

Women's or girl's overcoats, car coats, caps, cloaks, anoraks (including ski jackets), wind cheaters, wind-jackets.

30449 16048 7485 17660 10266 13274

Men's or boy's suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear).

32200 44174 99122 243069 466430 345762

Women's or girl's suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear).

33455 86420 109147 99931 289013 231989

Men's or boy's shirts. 101000 110830 87023 75385 503827 429215Women's or girl's blouses, shirts and shirt-blouses.

0 7059 90925 170147 133021 103395

Men's or boy's singlets and other vests, underpants, briefs, nightshirts, pyjamas, bathrobes, dressing owns and similar articles.

35472 75179 2836 20729 77066 153345

Women's or girl's singlets and other vests, slips, petticoats, briefs, panties, nightdresses, pyjamas, negliges, bathrobes, dressing gowns and similar articles.

16343 52242 5122 7046 49356 29343

Babies' garments and clothing accessories.

27252 96312 33133 73678 233393 115284

Garments made up of fabrics heading 56.02, 56.03, 59.03, 59.06 or 59.07.

493784 839881 972663 511081 319275 221072

Track suits, ski suits and swimwear, other garments.

358 7840 0 6140 22834 20405

Brassieres, girdles, corsets, brace, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted.

5213 3084 14864 14450 9486 19738

Handkerchiefs. 2221 2730 5137 4882 18080 4582

Shawls, scarves, mufflers, mantillas, veils and the like.

6453 9659 20512 8783 26950 47826

Ties, bow ties and cravats. 20656 67433 95758 76035 74318 111278Gloves, mittens and mitts. 0 790 831 0 1880 1591Other made up clothing accessories, parts of garments or of clothing accessories, other than those of heading 62.12.

3661469 4167949 4505956 5930098 8142659 7874762

Sub-total: 4494752 5622529 6059010 7273885 10401569 9796389Other man-made textile articles, sets, worn clothing and worn textile articles and rags:Blankets and travelling rugs. 51111 89343 118526 106526 77958 163821Bed linen, table linen, toilet linen and kitchen linen.

5611 7355 11578 23954 11236 31234

Curtains (including drapes) and interior blinds; curtain or bed valances.

4517 19800 12261 9113 8252 3650

Other furnishing articles, excluding those of heading 94.04.

1392 3261 9209 1007 16783 6355

Sacks and bags of a kind used for the packing of goods.

121374 129511 173726 147490 71433 66337

Tarpaulins, awnings and sun blinds; tents; sails for boats, sailboards or land craft; camping goods.

717 0 2693 9285 4776 38940

17

Description 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Other made up articles, including dress patterns.

1249 4454 18872 2285 126252 37732

Sets consisting of woven fabric and yarn, whether or not with accessories for making up into rugs, tapestries, embroidered table cloths or serviettes or similar textile articles put up in packings for retail sale.

0 3950 697 13994 233 0

Worn clothing and other worn articles. 123107 138860 126247 148385 81555 114599Used or new rags, scrap twine, cordage, rope or cables of textile materials.

6232 1340 14597 0 701 2391

Sub-total: 315310 397874 488406 462039 399179 465059Machinery:

Nuclear reactors, boilers, machinery, mechanical appliances and spare parts:Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated.

711029 965192 1245092 1570958 1775171 2295605

Machines for extruding, drawing, texturing or cutting man-made textile materials.

92516 314071 290419 1025982 776881 175629

Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for textile yarns; textile reeling or winding (including weft-winding) machines and machines for preparing textile yarns for use on the machines of heading 84.46 or 84.47.

4545281 6739433 10809492 14201073 19740981 18896293

Weaving machines (looms). 748046 940283 2061962 3922000 3874301 3380594Knitting machines, stich-bonding machines and machines for making gimped yarn, tulle, lace, embroidery, trimmings, braid or net and machines for tufting.

1963288 3224271 4039316 6417221 7566601 8675632

Auxiliary machinery for use with machines of heading 84.44, 84.45, 84.46 or 84.47 (for ex. Dobbies, jacqards, automatic stop motions); parts and accessories suitable for use solely or principally with the machines of this heading or of 84.44, 84.45, 84.46 or 84.47.

671632 910561 1028257 1600642 1788655 2287073

Machinery for the manufacture or finishing of felt or non wovwns in the piece or in shapes, including machinery for making felt hats; blocks for making hats.

89118 8682 45860 77000 38975 58110

House-hold or laundry-type washing machines; including machines which both wash and dry.

16063 35099 64647 122302 105641 105017

Machinery for washing, cleaning, wringing, drying, ironing, pressing, bleaching, dyeing, dressing, finishing, coating or impregnating textile yarns, fabrics etc.

2877255 3348470 5085965 8996969 10094267 9893445

Sub-total: 11714228 16486062 24671010 37934147 45761473 45767398

Grand Total: 9438089 80390388Average per industrial entity: 1,749 14,895Total 116521540 149503992 190845958 242518964 282699044 313706158

% Increase: 28 28 27 17 11% Increase during 2007-08 compared to 2002-03

169

Average annual % increase during last 5 years

22

2.4.2 Import of Some Specific Items, Derived from Secondary Source

18

During last 10 years (1998-99 to 2007-08), cotton import increased by eight folds. In 1998-99, cotton import was worth Tk. 11,200 million, which stood at Tk. 87,110 million in 2007-08. Average annual growth in import in money term was 30 percent. For more details, Table – 2.4 may be consulted.

During last 10 years (1998-99 to 2007-08), textile and textile article import increased by more than two folds. In 1998-99, textile and textile article import was worth Tk. 53,300 million, which stood at Tk. 129,840 million in 2007-08. For more details, Table – 2.4 and Table – 2.5 may be consulted.

19

Table – 2.4: Import of Cotton, Yarn, Textile & Textile Articles and Staple Fibre in Taka(Tk. In Million)

Period ImportCotton Yarn Textile & Textile Articles

1998-99 11,200 13,600 53,3001999-00 13,940 15,090 58,0102000-01 19,410 17,390 69,6802001-02 17,940 16,220 61,0202002-03 22,740 15,610 64,0602003-04 34,360 19,000 76,2702004-05 40,960 24,140 96,4602005-06 49,870 33,670 1,15,9802006-07 59,200 40,230 1,30,6402007-08 87,120 47,390 1,29,840

Source: Economic Trends, Statistics Department, Bangladesh Bank, September 2008

Table – 2.5: Import of Raw Cotton, Yarn, Textile & Textile Articles and Staple Fibre in Million US$ (In million US$)

Items 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Raw Cotton 360 312 393 583 666 742 858

Yarn 322 283 270 323 393 501 582Textile & Articles

1291 1063 1106 1295 1571 1728 1892

Staple Fibre 39 39 41 57 75 76 97

Source: Annual Import Payment 2006-2007, Bangladesh Bank

2.4.3 Countries of Import of Some Specific Raw Materials

Imports were made from:

Silk: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Pakistan, Saudi Arabia, Singapore, Sri Lanka, Taiwan, Thailand, Turkey, USA, Uzbekistan and Vietnam.

Wool & Woven Fabrics: Bahrain, Bhutan, Brazil, Canada, China, France, Germany, Hong Kong, India, Indonesia, Italy, Korea, Malaysia, Pakistan, Poland, Singapore, Taiwan, Tajikistan, Thailand, UAE, UK and USA.

Cotton: Afghanistan, Australia, Azerbaijan, Bahrain, Belgium, Benin, Brazil, Brunei, Burkina Faso, Burundi, Cameroon, Canada, Chad, China, Czech Republic, Cambodia, Egypt, Ethiopia, Finland, France, Germany, Ghana, Hong Kong, India, Indonesia, Iran, Ireland, Italy, Ivory Coast, Japan, Jordan, Kazakhstan, Kenya, Kirghiz, Korea, Laos, Latvia, Macao, Malawi, Malaysia, Maldives, Mali, Mauritius, Mexico, Mongolian Republic, Netherlands, Niger, Nigeria, Oman, Pakistan, Philippines, Poland, Portugal, Saudi Arabia, Senegal, Singapore, South Africa, Spain, Sri Lanka, Sudan, Swaziland, Sweden, Switzerland, Taiwan, Tanzania, Tajikistan, Thailand, Togo, Turkey, Turkmenistan, UAE, Uganda, UK, USA, Russia, Uzbekistan, Vietnam and Zimbabwe.

20

2.5 Production

2.5.1 Production of Cotton, Cotton Yarn and Cotton Cloth

Cotton is produced in the country, but in an insignificant quantity. In 1997-98, cotton production in the country was 14,000 tons, which increased to 78,000 tons in 2003-04, but later on decreased to 30,000 tons in 2007-2008.

During last 9 years, cotton cloth production increased by more than four folds. In 1997-98, cotton cloth production was 102.55 million meters, which stood at 939.55 million meters in 2006-07. For more than 10 times, details, Table – 2.6 may be consulted.

Table – 2.6: Production under different Sub-sectors

PeriodProduction

Cotton (in ‘000’ tons) Cotton Yarn(in ‘000’ Bales)

Cotton Cloth (in ‘000’ Meters)

1997-98 14 294 10,255

1998-99 - 304 11,155

1999-00 - 325 12,410

2000-01 27 338 14,731

2001-02 30 364 16,138

2002-03 24 388 18,030

2003-04 78 470 26,296

2004-05 2.5 573 32,585

2005-06 30 671 38,050

2006-07 30 870 40,065

2007-08 711 42,086

Source: Economic Trends, Statistics Department, Bangladesh Bank, September 2008

2.5.2 Updated Macro Database on Production, Derived from Field Survey

Table – 2.7 below gives summary picture of total annual production of textile items by each sub-sector,

including average per mill production, modal production and mean deviation during 2005-06, 2006-07 and

2007-08 (July-December). It may be seen from the Table that, with a little exception, under each sub-

sector, every year production has been increasing quite significantly. But, compared to others, under

spinning, knitting, sweater and woven sub-sectors, production has been increasing in more than normal

rate. For more details, Table – 2.7 below and Tables given under subsequent section may be consulted.

21

Table – 2.7: Actual Production(Production in Million

Kg/Meter/Pcs)

Sub-sector Unit 2005-06 2006-07 2007-08 (July-December 2007)

Spinning Kg 526.79 605.62 339.3Weaving Meter 869.22 939.55 553.95 Pcs 0.73 0.82 0.41Composite:

Weaving Meter 55.67 50.83 25.86Spinning Kg 16.69 16.8 8.41Dyeing Meter 25.88 25.85 12.93Dyeing Kg 9.23 9.23 4.61

Specialized Power Loom Meter 86.35 168.44 84.27Terry Towel Kg 17.18 18.62 9.38Dyeing, Printing & Finishing (Mechanized)

meter 465.87 520.56 333.35

Kg 356.89 376.4 197.14Dyeing, Printing & Finishing (Semi-mechanized)

Meter 403.44 186.5 151.05

Kg 94.2 178.15 55.18Sweater Pcs 229.31 368.52 210.43Garments (Woven) Pcs 1220.12 1776 811.5Garments (Knit) Pcs 2188.51 2532 1256.85Knitting Kg 594.92 630.00 232.46Silk Meter 5.75 7.47 4.58Sewing Thread Kg 4.47 7.76 2.52 Meter 0.91 1.51 0.64Synthetic Yarn Kg 19.1 27.79 10.27

2.5.3 Reasons for Shortfall in Production

It has been assessed from the field survey that, most of the industries under all sub-sectors faced

production shortfall particularly due to electricity supply problem. Some, however, tried to compensate

shortfall to some extent through installing own stand-by generator. The number of industries facing acute

electricity supply problem is 4,943 (92%). Some others faced production shortfall due to shortage of raw

materials and working capital, lack of proper planning, misleading lead time and lack of spare parts. For

more details, Table – 2.8 below may be consulted.

22

Table – 2.8: Reasons for Shortfall in Production during July-December 2007

Sub-sector

Reason of Shortfall and Duration in Months

Electricity Failure

Shortage of Raw

Materials

Shortage of Working Capital

Lack of Proper

Planning

Misleading Lead Time

Lack of Spare Parts Strike Natural

Disaster Others

D N D N D N D N D N D N D N D N D NSpinning 4-6 317 1-2 115 1-2 18 1-2 5 1-2 3 1-2 77 0 0 0 0 0 0Weaving 5-7 701 0 0 0 0 1-2 21 0 0 0 0 0 0 0 0 0 0

Composite 5-7 81 1-3 31 1-2 9 1-2 7 0 0 0 0 0 0 0 0 0 0Power Loom 4-6 415 1-2 3 1-2 8 0 0 0 0 0 0 0 0 0 0 0 0Terry Towel 4-6 72 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Dyeing, Printing & Finishing (Mechanized)

6-8 241 1-2 79 1-2 15 0 0 0 0 0 0 0 0 0 0 0 0

Dyeing, Printing & Finishing (Semi-mechanized)

5-7 83 1-2 21 1-2 9 0 0 0 0 0 0 0 0 0 0 0 0

Sweater 7-8 601 0 0 1-2 35 0 0 0 0 0 0 0 0 0 0 0 0Garments 5-6 1,521 1-2 101 1-2 67 0 0 0 0 0 0 0 0 0 0 0 0Knitting 7-9 789 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Silk 8-10 99 1-2 7 1-2 11 0 0 0 0 0 0 0 0 0 0 0 0Sewing Thread 5-6 16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Synthetic Yarn 5-6 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total: 4-5 4943 1-2 357 1-2 172 1-2 33 1-2 3 1-2 77 0 0 0 0 0 0

D – Average duration in hour/day; N – No. of responding Units

2.5.4 Suggestions for Minimizing Shortfall in Production

All the industries which have identified the above reasons as the major causes for production shortfall, have suggested for regular electric supply, availability of raw materials and spare parts in time, availability of bank loan support in case of working capital shortage, proper production and inventory management etc. for overcoming existing production shortfall under different sub-sectors. For more details, Table – 2.9 may be consulted.

Table – 2.9: Suggestions for Minimizing Shortfall in

Production

Sub-sector

Suggestions (Frequency /No.)

Regular and unhindered

electric supply

Raw materials

supply to be unhindered

Bank support with necessary working

capital at times of need

Proper production plan and inventory

management

Need based lead time to be

determined

Spare parts should be made available before

headSpinning 317 115 18 5 3 77

Weaving 701 0 0 21 0 0

Composite 81 31 9 7 0 0

Power Loom 415 3 8 0 0 0

Terry Towel 72 0 0 0 0 0

Dyeing, Printing & Finishing (Mechanized)

241 79 15 0 0 0


83 21 9 0 0 0

Sweater 601 0 35 0 0 0

Garments 1,521 101 67 0 0 0

Knitting 789 0 0 0 0 0

Silk 99 7 11 0 0 0

Sewing Thread 16 0 0 0 0 0

Synthetic Yarn 7 0 0 0 0 0

Total: 4,943 357 172 33 3 77

23

2.6 Export and Export Earnings from Textile Products

2.6.1 Export Quantity and Earning from Apparels

Table – 2.10: below shows export and export earnings from apparels. It may be seen from the Table that, during from 1995-96 to 2007-08, export earnings increased by more than 4 times. These exports included woven and knit garments and sweater. During 2005-06 and immediately after that, export earning from woven garment was much higher than knit (including sweater) garments. But, earning from woven garments lagged behind compared to earning from knit garments (2007-08). This trend indicates that might be, in the immediate future, earning from knit garments will outstrip earning from woven garments. For details, Table – 2.10 below may be consulted.

Table – 2.10: Export Quantity and Earning from Apparels

(Earning in Million US$ and Quantity Exported in Million Dozen)

Financial Year

Export Earning (Million US$) Export in Quantity (Million Dozen)

Woven Sweater Knit (excluding Sweater) Total Woven

Knit (including Sweater)

Total

1995-96 1948.81 70.41 527.91 2547.13 48.82 23.18 72.00

1996-97 2237.95 196.60 566.70 3001.25 53.45 27.54 80.99

1997-98 2844.43 296.29 641.22 3781.94 65.59 32.60 98.19

1998-99 2984.96 810.49 763.32 4019.98 64.79 36.66 101.45

1999-00 3081.19 325.07 943.15 4349.41 66.63 45.27 111.90

2000-01 3364.32 476.87 1018.64 4859.83 71.48 52.54 124.02

2001-02 3124.82 517.83 941.10 4583.75 77.05 63.39 140.44

2002-03 3258.27 578.37 1075.45 4912.09 82.83 69.18 152.01

2003-04 3538.07 616.31 1531.71 5686.09 90.48 91.60 182.08

2004-05 3598.20 893.12 1926.35 6417.67 92.26 120.13 212.39

2005-06 4083.82 1044.01 2772.97 7900.80 108.82 165.02 273.84

2006-07 4657.63 1248.09 3305.51 9211.23 133.08 199.54 332.62

2007-08 5167.28 1474.09 4058.43 10699.80 147.43 241.60 389.03

Source: News at BGMEA, September 2008

2.6.2 Export Earning from Major Sub-sector Products

Table – 2.11: below shows export earnings from textile and articles, raw cotton, excluding linters, cotton not

corded, cotton waste, cotton corded, all sorts of readymade garments, knitwear and woven garments. It

may be seen from the Table that, from each of these sub-sectors, during last 07 years, export receipts were

more than double. Unhindered and sustained export earning came from textile and articles, cotton corded,

knitwear and woven garments. For details, Table – 2.11 below may be consulted.

24

Table – 2.11: Sub-sector-wise Export Earnings (Tk. In Million)

Items 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07Textile & Articles 232457.700 218745.770 234981.095 291673.838 371447.893 455714.232 583558.568Raw Cotton excluding linters

- - 291.668 448.181 356.200 447.380 388.699

Cotton not corded 16.658 21.806 - - - - -Cotton Waste - - 158.944 178.275 203.574 346.433 321.523Cotton Corded 2382.764 2130.445 3053.965 3720.234 4727.929 7628.200 8982.025Readymade Garments all sorts

166553.935 158810.884 - - - - -

Hosiery all sorts 36068.397 33877.609 - - - - -Knitwear - - 111873.922 142182.426 185151.294 230084.237 302080.935Woven Garments - - 96917.686 118344.143 144477.861 171336.358 21068.778

Source: Annual Export Receipts 2006-2007, Bangladesh Bank

2.6.3 Countries Where Textile Products are Exported

Silk Fabrics: Canada, Denmark, India, Japan, Mozambique, Spain, Turkey and USA.

Wool and Woven Fabrics: Belgium, Canada, China, Denmark, Finland, France, Germany, India, Ireland, Italy, Japan, Malaysia, Nepal, Netherlands, Norway, Poland, Portugal, Spain, Switzerland, Turkey, UK and USA.

Cotton Fabrics: Australia, Austria, Bahrain, Belgium, Brazil, Canada, China, Croatia, Cambodia, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hong Kong, India, Ireland, Italy, Japan, Korea, Kuwait, Madagascar, Malaysia, Moldavia, Nepal, Netherlands, Pakistan, Poland, Portugal, Saudi Arabia, Singapore, South Africa, Spain, Sri Lanka, Sudan, Sweden, Switzerland, Thailand, Tunisia, Turkey, UAE, UK, USA and Vietnam.

Knitted Fabrics: Afghanistan, Australia, Austria, Belgium, Bhutan, Canada, China, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, India, Indonesia, Italy, Jordon, Korea, Malaysia, Myanmar, Mexico, Nepal, Netherlands, New Zealand, Norway, Pakistan, Portugal, Saudi Arabia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Turkey, UAE, UK, USA and Vatican City.

2.7 Updated Macro Database on Manpower and Requirement of Textile Technologists, Derived from the Survey

In the textile Mills/Industries/Factories under the survey, there are, in all 4,228,389 employees. The employees consist of Textile Technologists, non-technical persons and general workers. Out of the total general workers, there are 1,800,283 male workers and 2,140,169 female workers, totalling 3,940,452 general workers. This constitutes 93% of the total employees of the Mills/Industries/Factories. Again, the number of Textile Technologists is 5,646 which is 0.16 percent of the total manpower in this Sector. However, the number of skilled workers is 3212159 which is 76% of the total number of employees under this Sector. For more details, Table – 2.12 below may be consulted.

25

Table - 2.12: Summary Status of Manpower in the Textile Sector

Sub-Sectors Textile Technologists Non-technical Persons

Others (General Workers) Total Grand TotalMS/

Ph.DGraduate Diploma Total Male Female

Skilled Unskilled Skilled UnskilledSpinning 8 312 1,275 1,595 17,678 83,542 26,528 78,785 37,681 244,214 245,809

Weaving 4 61 226 291 9,640 57,575 12,820 17,503 2,894 100,432 100,723

Composite 3 33 67 103 2,088 5,000 1,816 3,511 1,709 14,124 14,227

Power Loom 1 0 5 6 17,048 18,582 10,303 2,235 1,362 49,530 49,536

Knitting Industry 5 404 645 1,054 33,583 218,376 43,473 175,415 48,909 519,756 520,810

Terry Towel 0 12 60 72 1,546 8,256 1,680 5,428 1,522 18,432 18,504

Dyeing (Mecha) 4 484 492 980 9,442 46,887 17,695 21,716 6,377 102,117 103,097

Dyeing (Semi-Mecha) 0 166 160 326 1,868 18,013 3,518 12,123 2,289 37,811 38,137

Synthetic Yarn 0 6 12 18 1,022 2,513 1,596 1,302 1,330 7,763 7,781

Sewing Thread 0 1 1 2 475 1,879 124 638 48 3,164 3,166

Sweater Industry 0 55 106 161 37,620 262,374 61,643 180,953 54,769 597,359 597,520

Silk Industry 0 0 12 12 549 1,263 528 777 633 3,750 3,762

Ready Made Garments (RMG) Industries

4 270 164 438 128,525 757,607 136,692 1,229,906 250,354 2,503,084 2,503,522

Textile Education & Trg Institute

50 169 171 390 650 0 0 0 0 650 1,040

Buying House 1 11 90 102 20,557 0 0 0 0 20,557 20,659

Other Organization 10 50 34 94 0 0 0 0 0 0 94

90 2034 3520 5644 282291 1481867 318416 1730292 409877 4222743 4228387

2.8 Plan for Expansion of Industrial Units

From the field survey it could be assessed that, out of 7,137 industrial units surveyed, 3,423 (48%) opined for expansion of the own industrial entities, while 3,721 (52%) opined for not expanding their industrial entities. No sub-sector is free from this negative opinion. This only varies in degree among the sub-sectors. Table – 2.13 below reveals this fact in detail.

Table – 2.13: Summary of the Plan for Expansion

Sub-sector No. of MillsYes, Plan for Expansion

(No. of Units)

No Plan for Expansion

(No. of Units)Spinning 332 235 98Weaving 655 559 96Composite 31 21 10Power Loom 412 196 216Terry Towel 64 49 16Dyeing, Printing & Finishing (Mechanized) 257 229 29Dyeing, Printing & Finishing (Semi-mechanized) 95 78 18Sweater 682 346 337Garments 3,837 1,085 2752Knitting 605 536 70Silk 108 58 51Sewing Thread 46 25 21Synthetic Yarn 13 6 7Total: 7,137 3,423 3721% 100 48 52

26

3.1 Introduction

3.1.1 Present Status of the Mills/Factories under Different Textile Sub-sectors

While making extensive field survey, we have got, in all 7,542 industrial units under all sub-sectors, out of which, we have found 6025 (80%) in running condition, while we have found 1517 industrial units (20%) closed for some reasons or other. Details may be seen from Table – 3.1 below.

Table – 3.1: Present Status of the Mills/Factories

Sub-sector No. of entity Running (No. of Units)

Closed (No. of Units)

Spinning (Public) 24 20 4

Spinning (Private) 308 281 27

Weaving * 655 581 74

Composite 31 29 2

Power Loom 412 409 3

Terry Towel 64 61 3

Dyeing, Printing & Finishing (Mechanized) 257 250 7

Dyeing, Printing & Finishing (Semi-mechanized) 95 94 1Sweater 682 544 138

Garments 3837 2640 1197

Knitting 605 572 33

Silk 108 80 28

Sewing Thread 46 46 0

Synthetic Yarn 13 13 0

Buying House 311 311 0

Textile Education (Public) 51 51 0

Textile Education (Private) 26 26 0

Others 21 21 0

Total: 7546 6029 1517

Percentage ( %): 100 80 20

* Weaving includes 19 Denim Factories.

27

3.2 Data on Investment, Capacity, Production and Import under Different Sub-sectors and their Analysis

3.2.1 Spinning Sub-sector

3.2.1.1 Introduction

According to field survey, there are 332 Spinning Mills in the country, out of which, 31 Spinning Mills have been found closed.

3.2.1.2 Investment

Table – 3.2: Capital Investment(Amount in Million

Tk.)

Name Land Building Machinery Other Assets Total

Spinning Industry 25818.90 30169.12 147102.52 8191.74 211282.28

The capital investment of the Spinning Mills is comprised of investment in land, building, machinery and other related assets. The total investment in land is Tk. 25,818.90 million.

The total investment in building is Tk. 30,169.12 million.

The total investment in machinery (both local and imported) is Tk. 147,102.52 million.

The total investment in other assets is Tk. 8,191.74.

The total investment in all the assets is Tk. 211,282.28 million. These may be seen from Table – 3.2 above.

3.2.1.3 Machines and Installed Capacity

The main machines used by the Spinning Mills are Spindles and Rotors Most of the Mills use Spindles. However, there are 7873378 spindles and 213505 rotors in these mills. Per day production capacity of these mills is 4346304 kg yarn. These may be seen in Table – 3.3 below. Table – 3.3: Machines and Installed Capacity

Spinning Mills



Production Capacity / Year (in

million)

Public sector Spindle 414,240 Kg 109,030 37.07

Public sector Rotor 19,312 kg 52,381 17.81Sub-total: 433,552 kg 161,411 54.88Private sector Spindle 7,459,138 Kg 3,669,523 1,247.64

Private sector Rotor 194,193 kg 515,370 175.23Sub-total: 7,653,331 kg 4,184,893 1,422.86Total 8,086,883 kg 4,346,304 1,477.74

28

3.2.1.4 Production

Table–below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, production has been increasing quite substantially.

Table – 3.4: Production (Production in Million Kg)


Spinning Kg 526.79 605.62 339.3

3.2.2 Weaving Sub-sector


According to field survey, there are 655 Weaving Mills in the country, out of which, 581 Weaving Mills are in operation and 74 Weaving Mills have been found closed.

3.2.2.2 Investment

The capital investment of the Weaving Mills is comprised of investment in land, building, machinery and other related assets.The total investment in land is Tk. 2,853.13 million.The total investment in building is Tk. 6,234.76 million.The total investment in machinery (both local and imported) is Tk. 17,852.16 million.The total investment in other assets is Tk. 3,238.96 millionThe total investment in all the assets is Tk. 30,179.00 million.These may be seen from Table – 3.5 below.

Table – 3.5: Capital Investment(Amount in Million

Tk.)Name Land Building Machinery Other Assets Total

Weaving Mills 2853.13 6234.76 17852.16 3238.96 30179.00


Table – 3.6: Machines and Installed Capacity




Power Loom 20,987 Meter 1,789,598 608.46Rapier loom 13,762 Meter 2,752,746 935.93Air Jet 1,382 Meter 551,784 187.61Sub-total: 36,131 Meter 5,094,128 1,732.00

The main machines used by the Weaving Mills are Power Loom, Rapier Loom, and Air/Water Jet Machines. Most of the Mills use Power Looms, followed by Rapier Looms.

29

3.2.2.4 Production

Table – below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, production has been increasing significantly. For more details, Table – 3.7 below may be consulted.

Table – 3.7: Production

(Production in Million Kg/Meter/Pcs)

Sub-sector Unit 2005-06 2006-07 2007-08 (July-December

2007)

Weaving Meter 869.22 939.55 553.95

Pcs 0.73 0.82 0.41

3.2.3 Composite Mills Sub-sector


According to field survey, there are 31 Composite Mills in the country, out of which, all 29 Composite Mills are in operation.

3.2.3.2 Investment

The capital investment of the Composite Mills is comprised of investment in land, building, machinery and other related assets.The total investment in land is Tk.474.15 million.The total investment in building is Tk. 3,473.95 million.The total investment in machinery (both local and imported) is Tk. 23,317.95 million.The total investment in other assets is Tk. 1,323.95 millionThe total investment in all the assets is Tk. 28,590.00 million.These may be seen from Table – 3.8 below.

Table – 3.8: Capital Investment(Amount in Million Tk.)

Name Land Building Machinery Other Assets Total Composite Mills 474.15 3473.95 23317.95 1323.95 28590.00


The main machines used by the Composite Mills are Spindles, Rotors, Power Loom, Rapier Loom, Jet/Winch Dyeing Machine and Air Jet Machines. Most of the Mills use Spindles and Rotor. However, there are 198,584 Spindles 10,040 Rotors, 1536 Rapier Looms and 703 Power Looms. These may be seen in Table – 3.9 below.

30


Sub-sector Machines No. of Machines Unit Installed Capacity/DayComposite Spindle 198584 Kg 96680

Rotor 10040 Kg 20220Jet/Winch Dyeing 70 Kg 34900

Jigger Dyeing 202 Meter 102800Power Loom 703 Meter 62000Rapier Loom 1536 Meter 337300

3.2.3.4 Production

Table – below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, production has been decreasing significantly. For more details, Table – 3.10 below may be consulted.


(Production in Million Meter or Kg)

Sub-sector Unit 2005-06 2006-07 2007-08 (July-December 2007)Weaving Meter 55.67 50.83 25.86Spinning Kg 16.69 16.8 8.41Dyeing Meter 25.88 25.85 12.93Dyeing Kg 9.23 9.23 4.61Power Loom Meter 86.35 168.44 84.27

3.2.4 Specialized Textile Mills/Power Loom Industries Sub-sector


According to field survey, there are 412 Specialized/Power loom Mills in the country, out of which, 409 Specialized/Power loom Mills are in operation and 03 Specialized/Power loom Mill has been found closed.

3.2.4.2 Investment

The capital investment of the Power Loom Industries is comprised of investment in land, building, machinery and other related assets.The total investment in land is Tk. 231.17 million.The total investment in building is Tk. 318.80 million.The total investment in machinery (both local and imported) is Tk. 1,829.18 million.The total investment in other assets is Tk. 820.85 millionThe total investment in all the assets is Tk. 3,200.00 million.These may be seen from Table – 3.11 below.


Name Land Building Machinery Other Assets Total Specialized Textile and Power Loom 231.17 318.80 1829.18 820.85 3200.00

31


The main machines used by the Specialized Power Loom Industries are Power Looms and Rapier Looms.. As such per day production capacity of 11,353 machines (Power Loom-9080, Rapier Loom-2205 and Air Jet – 68) is 873429 meter; and yearly capacity of those machines is 296.97 million meter. These may be seen in Table – 3.12 below.





Power Loom (Shuttle) 9,080 640,969 217.93Rapier Loom 2,205 Meter 203,460 69.18Air Jet 68 Meter 29,000 9.86Sub-total: 11,353 Meter 873,429 296.97

3.2.4.4 Production

Table – below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, production has been increasing quite substantially. For more details, Table – 3.13 below may be consulted.

Table – 3.13: Production(Production in Million

Kg/Meter)


Power Loom Meter 86.35 168.44 84.27

3.2.5 Knitting and Knit Dyeing Industries Sub-sector


According to field survey, there are 605 Knitting and Knit Dyeing Industries in the country, out of which, 572 Knitting and Knit Dyeing Industries are in operation and 33 Knitting and Knit Dyeing Industries have been found closed.

3.2.5.2 Investment

The capital investment of the Knitting Industries is comprised of investment in land, building, machinery and other related assets.The total investment in land is Tk. 9,467.12 million.The total investment in building is Tk. 20,249.36 million.The total investment in machinery (both local and imported) is Tk. 46,686.86 million.The total investment in other assets is Tk. 3,652.21 millionThe total investment in all the assets is Tk. 80,055.55 million.These may be seen from Table – 3.14 below.


Name Land Building Machinery Other Assets Total Knitting Industry 9467.12 20249.36 46686.86 3652.21 80055.55


32

The main machines used by the Knitting Industries are Circular Knitting Machines, Jet/Winch Dyeing Machines and Over lock. However, there are 11,651 Circular Knitting Machines, 1268 Jet/Winch Dyeing Machines. Per day production capacity of the Circular Knitting Machines is 17,051,052 meter and per day capacity of the Winch Dyeing Machines is 4,618,500meter, Jet dyeing machines is 945,000. These may be seen in Table – 3.15 below:





Circular Knitting 11,651 Eqv. Meter 17,051,052 5,797.36Winch Dyeing Machine 925 Eqv. Meter 4,618,500 1,570.29Jet Dyeing 343 Eqv. Meter 945,000 321.3Sub-total: 12,919 Eqv. Meter 22,614,552 7,688.95

3.2.5.4 Production

Table – 3.16 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, overall production has been increasing quite significantly. For more details, Table – 3.16 below may be consulted.


(Production in Million

Kg/Meter)


Knitting Kg 594.92 630.00 232.46

3.2.6 Terry-Towel & Linen Manufacturing Industries Sub-sector


According to field survey, there are 64 Terry-Towel & Linen Manufacturing Industries in the country, out of which, 61 Terry-Towel & Linen Manufacturing Industries are in operation and 03 Terry-Towel & Linen Manufacturing Industries have been found closed.

3.2.6.2 Investment

The capital investment of the Terry-towel & Linen Manufacturing Industries is comprised of investment in land, building, machine and other related assets. The total investment in land is Tk. 30.22 million.The total investment in building is Tk. 80.24 million.The total investment in machinery (both local and imported) is Tk. 1,419.01 million.The total investment in other assets is Tk. 608.54 millionThe total investment in all the assets is Tk. 2138.00 million.These may be seen from Table – 3.17 below.

Table – 3.17: Capital Investment (Amount in Million

Tk.)Name Land Building Machinery Other Assets Total

Terry Towel Linen Manufacturing Industry 30.22 80.24 1419.01 608.54 2138.00


33

The main machine used by the Terry Towel Industries is Terry Loom/Power Loom. However, there are 1986 Terry/Power Looms. Per day production capacity of the Terry/Power Looms is 115,431 meters. These may be seen in Table – 3.18 below.





million) Terry Loom/Power Loom 1,986 Meter 115,431 39.25Sub-total: 1,986 115,431 39.25

3.2.6.4 Production

Table – 3.19 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, production has been increasing significantly. For more details, Table – 3.19 below may be consulted.

Table – 3.19 : Production


Kg/Meter)Sub-sector Unit 2005-06 2006-07 2007-08 (July-December 2007)

Terry Towel Kg 17.18 18.62 9.38

3.2.7 Dyeing, Printing and Finishing Industries Sub-sector (Mechanized) (257 Mills)


According to field survey, there are 257 Dyeing, Printing and Finishing Industries (Mechanized) in the country, out of which, 250 Dyeing, Printing and Finishing Industries (Mechanized) are in operation and only 07 Dyeing, Printing and Finishing Industry (Mechanized) has been found closed.

3.2.7.2 Investment

The capital investment of the 257 Dyeing, Printing and Finishing Industries (Mechanized) in land, building, machine and other related assets. The total investment in land is Tk. 4,085.45 million.The total investment in building is Tk. 12,569.00 million.The total investment in machinery (both local and imported) is Tk. 21,643.84 million.The total investment in other assets is Tk. 3,690.70 millionThe total investment in all the assets is Tk. 41,989.00 million.These may be seen from Table – 3.20 below.

Table – 3.20 : Capital Investment(Amount in Million Tk.)

Name Land Building Machinery Other Assets Total Dyeing Printing Finishing

Industry (Mechanized) 4085.45 12569.00 21643.84 3690.70 41989.00

34


The main machines used by the Dyeing, Printing & Finishing (Mechanized) Mills are Jigger Dyeing Machines and Jet/Winch Dyeing Machines. All the Mills use Jet/Winch Dyeing Machines and Jigger Dyeing Machines. However, there are 1,304 Jigger Dyeing Machines and 1,750 Jet & Winch Dyeing Machines. On an average, each industry has 10.46 machines. These may be seen in Table – 3.21 below.





million) Jet & Winch Dyeing 1,750 Eqv. Meter 9,376,752 3,188.10Sub-total: 1,750 Eqv. Meter 9,376,752 3,188.10Jigger Dyeing 1,304 Meter 836,386 284.37Dyeing Machine 484 Eqv. Meter 3,186,696 1,083.48Sub-total: 1,990 Meter 4,023,082 1,367.85Flat Bed Screen Printing

178 Meter 233,026 79.23

Screen Printing 1,212 Meter 7,653 2.6Roller Printing 14 Meter 87,768 29.84Rotor Screen Printing 24 Meter 271,100 92.17Sub-total: 5,206 Meter 8,645,711 2,939.54

3.2.7.4 Production

Table – 3.22 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The

survey finds that, with the passage of time, production has been increasing quite significantly. For more

details, Table – 3.22 below may be consulted.

Table – 3.22: Production(Production in Million Kg/Meter)


Dyeing, Printing & Finishing (Mechanized)

meter 465.87 520.56 333.35Kg 356.89 376.4 197.14

3.2.8 Dyeing, Printing and Finishing Industries Sub-sector (Semi-Mechanized)


According to field survey, there are 95 Dyeing, Printing and Finishing Industries (Non-mechanized) in the country, out of which, 94 Dyeing, Printing and Finishing Industries (Non-mechanized) are in operation and only 01 Dyeing, Printing and Finishing Industry (Non-Mechanized) has been found closed.

.

35

3.2.8.2 Investment

The capital investment of the 95 Dyeing, Printing and Finishing Industries (Semi-Mechanized) in land, building, machine and other related assets. The total investment in land is Tk. 497.90 million.

The total investment in building is Tk. 288.41 million.

The total investment in machinery (both local and imported) is Tk. 4,064.34 million.

The total investment in other assets is Tk. 1,168.35 million

The total investment in all the assets is Tk. 6,019.00 million.These may be seen from Table – 3.23 below.Table – 3.23: Capital Investment

(Amount in Million Tk.)Name Land Building Machinery Other Assets Total

Dyeing Printing Finishing Industry (Semi-Mechanized) 497.90 288.41 4064.34 1168.35 6019.00


The main machines used by the Dyeing, Printing & Finishing (Semi-Mechanized) Mills are Hand-driven Jiggers and Hand-driven Rollers. However, there are 961 Hand-driven Jiggers and 520 Hand-driven Rollers, totalling 1,534 machines. These may be seen in Table – 3.24 below.

Table – 3.24: Machines and Installed Capacity Machines Installed

machine Numbers


Production Capacity / Year

(in million) Hand-driven Jigger 961 Meter 540,991 183.94Hand-driven Roller Printing 520 Meter 541,827 184.22Winch Dyeing 53 Eqv. Meter 318,000 108.12Sub-total: 1,534 Meter 1,400,818 476.28

3.2.8.4 Production

Table – 3.33 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, overall production has been increasing decreasing substantially. For more details, Table – 3.25 below may be consulted.



Kg/Meter)

Sub-sector No. of Mills Unit 2005-06 2006-07 2007-08 (July-December 2007)


95 Meter 403.44 186.50 151.03Kg 94.20 178.15 55.18

36

3.2.9 Synthetic Yarn Manufacturing Industries Sub-sector


According to field survey, there are 13 Synthetic Yarn Manufacturing Industries in the country, out of which, all the 13 Synthetic Yarn Manufacturing Industries are in operation.

3.2.9.2 Investment

The capital investment of the Synthetic Yarn Manufacturing Industries is comprised of investment in land, building, machinery and other related assets.


Name Land Building Machinery Other Assets Total Synthetic Yarn Manufacturing 178.95 200.54 2136.31 331.32 2847.11


The main machines used by the Synthetic Yarn Manufacturing Mills are Spindle & Rotor. These may be seen in Table – 3.27 below:





million) Spindle 650,692 Kg 343,417 116.76Rotor 7,532 Kg 24,458 8.32Total: 658,224 Kg 367,875 125.08

3.2.9.4 Production

Table – 3.28 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, during 2006-07, production increased substantially, but later on decreased. For more details, Table – 3.28 below may be consulted.

Table – 3.28: Production(Production in Million Kg)


Synthetic Yarn Kg 19.1 27.79 10.27

3.2.10 Sewing Thread Manufacturing Industries Sub-sector


According to field survey, there are 46 Sewing Thread Manufacturing Industries in the country, out of which, all 46 (100%) Sewing Thread Manufacturing Industries are in operation.


The main machines used by the Sewing Thread Manufacturing Mills are Sewing Machine, Sizing Machine, Warping Machine, Packaging, Dyeing Machine & Twisting Machine. However, there are 1,370 machineries. These may be seen in Table – 3.29 below:


Sub-sector Sub-sector Installed machine Unit Production Production Capacity /

37

capacity Capacity/Day Year (in million)Sewing Thread Sewing and other

Machines1370 Kg 158063 53.74

3.2.10.3 Production

Table – 3.30 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, production has been increasing insignificantly. For more details, Table – 3.30 below may be consulted.


(Production in Million Kg/Meter)


Sewing Thread Kg 4.47 7.76 2.52

3.2.11 Sweater Industries Sub-sector


According to field survey, there are 682 Sweater Industries in the country, out of which, 544 Sweater Industries are in operation and 138 Sweater Industries have been found closed.


The main machines used by the Sweater Industries are Hand-driven Flat Knitting Machine & Jachard Knitting machines. These may be seen in Table – 3.31 below:


Machine Name Installed machine capacity



Hand-driven Flat Knitting Machine

222,472 Pcs 1,533,354 521.34

Jachard Knitting 30,333 Pcs 902,691 306.91Total: 252,805 Pcs 2,436,045 828.26

3.2.11.3 Production

Table – 3.32 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The survey finds that, with the passage of time, production has been increasing quite substantially. For more details, Table – 3.32 below may be consulted.

Table -3.32: Production (Production in Million

Kg/Pcs)


Sweater Pcs 229.31 368.52 210.43

38

3.2.12 Silk Industries Sub-sector


According to field survey, there are 108 Silk Industries in the country, out of which, 80 Silk Industries are in operation and 28 industries are found closed.


The main machines used by the Silk Industries are Power Looms. These may be seen in Table – 3.33 below.


Sub-sector Sub-sector Installed machine capacity



Silk Power Loom 793 Meter 47,042 15.99

Sub-total: 793 Meter 47,042 15.99

3.2.12.3 Production

Table – 3.34 below shows production during 2005-06, 2006-07 and 2007-08 (July- December ’07). The

survey finds that, with the passage of time, production has been increasing significantly. For more details,

Table – 3.34 below may be consulted.



Kg/Meter/Pcs)


Silk Meter 5.75 7.47 4.58

39

4.1 Introduction

In this Section, present and future (In the year 2015) domestic consumption and demand-supply gap of yarn (both cotton and synthetic) and fabrics (both woven and knitted), including domestic consumption of fabrics for different types of wearing apparels and their sources of supply have been discussed.

4.2 Demand–Production Gap and Investment Opportunities in Primary Textile Sector of Bangladesh

4.2.1 Analysis of the Existing Market and the Opportunity in Textile Manufacturing

Investment opportunity of an industry in a country calls for detail evaluation of historical development of that particular industry and its product mixes, the demand-supply gap of the products, market potential of the products in the local and export markets, which help ascertaining the scope for creation of new capacity in that country. With a view to coming up with some conclusive recommendations in respect of new investment opportunity in knitting, knit-dyeing and knitwear manufacturing units in the country, detail analysis has been made in regard of the demand-supply situation of yarn, grey and finished fabrics (knit and woven) in the context of the growth of the domestic demand and export needs through apparels.

4.2.2 Introduction and Background of Textile Manufacturing in Bangladesh

Until liberation of Bangladesh, the textile sector was primarily an import-substitution industry. It entered into export market of Ready-made Garments-RMG (woven and knitted) in 1978 and progressed spectacularly during the next two and a half decades. Foreign exchange earning from export of RMG was only US$ 3.5 million in 1981 and this increased to US$ 9.2 billion in 2006-07. The apparel export showed a unique growth but in the initial period RMG industry was not adequately supported by the growth of domestic backward and forward linkages, e.g. spinning, weaving, knitting, fabric processing and the accessories industry. It may be mentioned that until 1994-95, country's RMG industry was mostly dependent on imported fabrics, as the Primary Textile Sector (PTS) could not be adequately developed for production of fabrics and yarn required for the export-oriented RMG industry of the country.

However, the PTS has shown an appreciable growth in the last few years and is now able to supply about 85% of the fabrics required for the export-oriented knit garment industry and 26% of the woven RMG industry.

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Estimation of Consumption

and Demand-Supply Gap of

Fabrics Keeping in View the

Local & Global Market

Because of the high dependence of the Woven RMG sector on imported fabrics, the net value addition from exports in 1997/98 was only 20%, which reached to more than 50% in 2006/07 as a result of rapid growth of PTS.

4.2.3 Present Structure of Textile Industry in Bangladesh

The textile industry sector has as many as 30 sub-sectors. However, the major sub-sectors that account for 90% of the total outputs are: Spinning (cotton based ring and rotor); Large and medium scale Power loom weaving unit with preparatory and front process machines; Specialized textiles and small power loom industry; Knitting and knit-dyeing; Dyeing/printing-finishing; Export oriented Readymade Garments (RMG).

4.2.4 Achievement and Present Position of Primary Textiles Sector

(PTS) from 1972 to 2006-07:

The recent achievement of Bangladesh PTS is highly satisfactory in some textile processing industry. For example, the country’s spinning capacity that was comprised with only 853,000 spindles immediately after liberation (1972-73) has increased to 8.0 million spindles by 2006-07. The total manpower under the PTS is now about 2.1 million, apart from nearly 2.4 million people employed in the export-oriented RMG industry. Yet there is no reason to be overconfident as the global trade-race is a never-ending process and the country has been passing through various global competitive trading environments after phase out of MFA facilities from January 2005.The major sub sector-wise phenomenal growth and capacity of textile industry in Bangladesh is shown in Table 4.1:

Table-4.1: Sub-sector-wise Machine Capacity:

SUB-SECTOR 1972-73 1983-84 1993-94 2007-08a) Spinning: (Spindle in ‘000’ Nos.) 853 1,108 2,388 7,873

(Rotor in ‘000’ Nos.) 213Sub-Total: 8086

b) Weaving (Loom in ‘000’ Nos.): i) Large Weaving Mills 6,800 6,177 6,235 36131 ii) Specialized and Small Power loom Units - 5,432 23,786 11353 iii) Handloom Industry (‘000’ Nos.) 375 437 501 498Sub-Total : 7,175 12,046 30,522 47982

c) Knitting & Knit-Dyeing: Unit Nos. (Export – oriented)

2 4 177 606

d) Dyeing –Finishing (Unit Nos.- Mechanized & Semi-Mechanized)

N. A. 152 248 354

e) Export-oriented RMG (knit and woven) 9 67 1,706 4,520

4.2.5 Production of Yarn and Fabrics during 2005-06, 2006-07 and 2007-08 (July-December), Derived from the Survey

Table 4.2 Production of Yarn and Fabrics during 2005-06, 2006-07 and 2007-08 (July-December), Derived from the Survey

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(Production in

Million)


Spinning Kg 526.79 605.62 339.3Weaving Meter 869.22 939.55 553.95 Pcs 0.73 0.82 0.41Composite:

Weaving Meter 55.67 50.83 25.86Spinning Kg 16.69 16.8 8.41Dyeing Meter 25.88 25.85 12.93Dyeing Kg 9.23 9.23 4.61

Specialized Power Loom Meter 86.35 168.44 84.27Terry Towel Kg 17.18 18.62 9.38Dyeing, Printing & Finishing (Mechanized)

meter 465.87 520.56 333.35

Kg 356.89 376.4 197.14Dyeing, Printing & Finishing (Semi-mechanized)

Meter 403.44 186.5 151.05

Kg 94.2 178.15 55.18Sweater Pcs 229.31 368.52 210.43Garments (Woven) Pcs 1220.12 1776 811.5Garments (Knit) Pcs 2188.51 2532 1256.85Knitting Kg 594.92 630.00 232.46Silk Meter 5.75 7.47 4.58Sewing Thread Kg 4.47 7.76 2.52 Meter 0.91 1.51 0.64Synthetic Yarn Kg 19.1 27.79 10.27

4.2.6 Production of Yarn & Fabrics from 1972-73 to 2006-07, derived from Secondary Sources

The production has increased in all the sub-sectors of Bangladesh PTS. Although Bangladesh is not a cotton growing country, it has succeeded to increase the production of yarn from 39 million kg in 1972-73 to 594 million kg in 2006-07 (almost 15 times higher within 35 years). Similarly, production of fabrics for domestic and export markets has increased from 702 million meters in 1972-73 to 4,910 million meters in 2006-07. The production of yarn & fabrics from 1972-73 to 2006-07 is shown as under:

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Table-4.3: Production of Yarn & Fabrics from 1972-73 to 2006-07

MAJOR TEXTILE PRODUCTS 1972-73 1983-84 1993-94 2006-07(a) Yarn Production (miln. Kg.) 39 67 140 594(b) Fabric Production in (miln. meter): (i) Woven 686 955 803 1,698(ii) Knitted (converted into miln. meter) 16 28 245 3,212Total of (b): 702 983 1,048 4,910

Source: Figures from 1972-73 to 1993-94 quoted from a Study Report sponsored by the Ministry of Textiles & Jute and those of 2006-07 are based on Economic Review 2006-07.

The growth trend of domestic production of yarn and fabric has followed the domestic consumption pattern growing demand of export–oriented RMG industry.

Table-4.4: Domestic Production of Yarn and Fabrics: From FY 2001-02 to 2007-08

FY Yarn Production(million k.g.)

Growth in % Fabric Production (million metre)

Growth in %

2001-02 298.50 - 2,050 -2002-03 340.00 15% 2,200 7%2003-04 380.00 12% 2,750 25%2004-05 450.00 18% 3,400 23%2005-06 537.00 17.5% 4,090 20%2006-07 594.00 10.5% 4,910 20%2007-08 * 710.00 19% 5,800 18%Annual Av. growth 15.% 18.8%

Table-4.5: Domestic Production and Consumption of Fabrics: For FY 2001-02 to 2007-08)

Financial Year Availability of fabric in the domestic market Less : local fabrics used in RMG Domestic consumption

Consumption growth (%)

Domestic production

Plus import (Official and Unofficial)

Total availability Woven Knit Total

2001-02 2,050 598 2,648 240 (17%) 718 (63%) 958 1,690 -

2002-03 2,200 686 2,966 301 (18%) 833 (67%) 1,134 1,832 8.42003-04 2,750 683 3,433 334 (20%) 1,154 (70%) 1,488 1,945 6.22004-05 3,400 725 4,057 375 (22%) 1,621 (75%) 1,996 2,061 62005-06 4,090 985 5,075 504 (25%) 2,365 (80%) 2,869 2,260 9.62006-07 4,910 1,130 6,040 631 (26%) 2,945 (82%) 3,576 2,464 92007-08 5,800 1,240 7,040 711 (26%) 3,587 (85%) 4,298 2,742 11.3Average annual growth 8.4

Basis of estimates: Production figures are based on actual, import quantity estimated from import in value term obtained from Bangladesh Bank, fabric consumption for RMG estimated on the basis of quantity exported in dozen.

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It appears from the above tables that over the last five years the domestic production of fabrics has been lagging behind the total demand nonetheless domestic production of spinning and weaving/knitting together has registered on average annual increase of 14.5 and 19 percent respectively. Table 4.5 shows that the total availability of fabrics in the country in 2007-08 was 7,040 mln. mtr. (including import of 1,240 mln. mtr.) of which 4,298 mln. mtr. consumed by the export-oriented RMG and the remaining 2,742 mln. mtr. fabrics consumed in the local market.

4.2.7 Historical growth-trend of RMG & Textile industries in Bangladesh

Table-4.6 as produced below shows the consumption of fabrics and yarn by the export-oriented RMG industry from 2001-02 to 2007-08. A total of 6,959 million meters (2,738 million meters woven and 4,221 million meters knit) fabrics were consumed in 2007-08 by the export-oriented RMG industry from domestic production and import from abroad. To produce this quantity of fabrics an estimated 1,160 million kg of yarn was consumed, of which 456 million kg for woven production and 704 million kg for knit production.

Table- 4.6: Fabric Vis-à-vis Yarn Consumed by the RMG Industry from 2001-02 to 2007-08

Financial Years

Export of Readymade Garment

(Million Dozen)

Fabrics Consumed by RMG Industry from domestic &

overseas supply (Million Metre)

Yarn Equivalent(Million Kg.)

Woven Knit Woven Knit Total Woven Knit Total

2001-02 77.05 63.39 1,427 1,141 2,568 238 190 428

2002-03 82.83 69.17 1,534 1,245 2,779 256 207 463

2003-04 90.48 91.60 1,675 1,648 3,323 279 275 554

2004-05 92.26 120.13 1,708 2,162 3,870 284 360 644

2005-06 108.81 165.02 2,015 2,970 4,985 336 495 831

2006-07 133.07 199.54 2,464 3,592 6,056 410 598 1,008

2007-08 147.85 234.52 2,738 4,221 6,959 456 704 1,160

Annual growth

11.67% 24.75% 11.67% 24.75% 18.24% 11.64%24.79%

18.24%

Note: (i) One Dozen of Woven RMG = 18.52 metres of fabric.(ii) One Dozen of Knit RMG = 18.00 metres of fabric.(iii) Six metres of fabric = 1 kg. of yarn.

It is important to review the historical growth of Export-oriented RMG Industry of Bangladesh (from 1977-78 to 2006-07) to anticipate the future growth trend. Despite that the growth of RMG export has been declining over the initial years as compared to those of subsequent decades, the absolute quantitative growth has been expanding as shown below:

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Table-4.7: Growth of Export-oriented RMG Industry of Bangladesh from 1977-

78 to 2006-07

FY No. of Unit Export Quantum (Million Dozen)

Export Earning (million US$)

Annual Growth (in %)

1977-78 9 - 0.0691983-84 308 1.14 31.570 911993-94 1,839 45.17 1,555.790 482006-07 4,500 332.61 9,200.00 92

Source: EPB

4.2.8 Growth of RMG Export from early 1990 to 2006-07

From early 90’s the export-oriented RMG industry gained continuous support with local supply of yarn, fabrics and accessories. This has accelerated the growth rate of RMG export, which reached at US$ 10.7 billion by the year 2007-08 from the level of 1.55 billion in 1993-94. Such a high growth has been possible because of local availability of yarn, fabric and accessories, which did not happen in the countries like, Sri Lanka and Mauritius who could not develop their PTS.

4.2.9 Demand-Supply Gap of Fabrics Vis-a-Vis Yarn (existing and projected):

4.2.9.1 Demand Growth Potentials of Fabrics and Yarns

The major factors, which influence the growth of Bangladesh PTS are:

Gradual increase in domestic consumption of apparels, home textiles and technical textiles;

Fast growth of RMG export from Bangladesh and

Direct export of various textile products (fabrics, home textiles, denims, sarees etc.)

The growth of domestic consumption depends upon a set of complex factors that include among others, the growth of population, per capita income, growth of foreign exchange remittance, change of tastes etc. Some of these are not well graspable factors for future demand estimation through dependable prediction models. Similar is the case with the export-oriented RMG growth, which is more complicated as access to international market depends upon the following: Domestic factors of production (cost of production, local export enabling factors, etc.) and Importing countries’ market characterizations, which is highly influenced by demand trend, visible and

invisible regional factors and bilateral or multilateral trade pacts.

4.2.9.2 Projected Demand of Fabrics & Yarn by 2014-15

The demand for fabrics for domestic market and export through RMG has been worked out at 9,701 million meters in the base year 2007-08 of which 4,221 million meters for knit and 2,738 million meters for woven and the remaining 2,742 million meters for domestic market.

Earlier a common apprehension existed among the most people that Bangladesh export-oriented RMG would face a sort of catastrophe in the Post-MFA era due to implementation of WTO (complete phase out of MFA i.e., withdrawal of quota), changes in providing incentives and impacts of various regional blocks and Free-Trade Agreement (FTA). Firstly, EU has extended duty free access of apparel, which will exist until 2015. On the other hand, expert opinions concluded that the

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abolishment of quota would initially bring a set back for woven RMG mainly due to loss of control over quota distribution by some local large RMG quota dealers; but this is believed to create better opportunity for the real RMG manufacturers to compete with more cost advantage in the US market in the near future. For knit RMG export, so far nothing happened to be panic; the growth has rather enhanced in the recent period despite a little price fall. In fact, except China there is very limited no. of countries, which have PTS with high value change to throw Bangladesh out of competition in the export markets of US and EU. Bangladesh RMG has to scare for the dangers that have correctly been anticipated so far, but there is no valid reason for being disappointed keeping eyes at the trajectory on which global RMG and textile market is now travelling.

Considering all these as stated in the foregoing, there is good scope of projecting the demand with the help of moving average method of demand forecasting, based on last few years (2001-02 to 2007-08). Let us first see the future demand scenario of fabrics and yarns by 20014-15, as shown below.

Table- 4.8(a) Projected Demand of Fabrics for the Domestic and Export through RMG Industry (2008-09 to 2014-15): Optimistic Variant

Fabric in mln. mtr. & Yarn in million Kg Growth rate Projected Demand of Fabrics & Yarn

TotalFabrics

Total YarnDomestic Market

(Growth Rate 8.4%)

Export through RMG Year Knit

(Growth Rate 24.75%)

Woven(Growth Rate

11.67%)

Sub-Total

2007-08 (Base year)

2,742 4,221 2,738 6,959 9,701 1,617

Projected :2008-09 2,972 5,266 3,058 8,323 11,296 1,883

2009-10 3,222 6,565 3,414 9,979 13,201 2,200

2010-11 3,493 8,184 3,813 11,997 15,490 2,582

2011-12 3,786 10,203 4,258 14,461 18,247 3,041

2012-13 4,104 12,720 4,755 17,475 21,579 3,597

2013-14 4,449 15,859 5,309 21,168 25,617 4,270

2014-15 4,823 19,771 5,929 25,700 30,523 5,087

Assuming yarn fabric ratio 1:6.

Note-1: Projected demand for fabrics for domestic and export through RMG-Knit and Woven considered at the rate of 8.4%, 24.7.5% and 11.67% respectively for the period from 2008-09 to 2014-15.

But it is worthwhile noting that a global recession has started that already has impacted on our major importers’ economy (e.g., US, Germany and UK); the others are likely to be invaded shortly in the same way. Apparently, this impact has not been statistically reflected well on our RMG &PT sector but is believed to be soon visible in Bangladesh manufacturing market, opine most RMG exporters and experts. So, instead of projecting the future demand based merely on moving average, the model should be reinforced by forecasting methods based on behavioural dimensions, which depends on historical data and intuitive assumptions made by experts having long presence in the sector. In that case, we may impose an onslaught of 25% on growth potentials. In that case, we assume 6.3%, 18.56% and 8.75% demand growth for domestic, export oriented knit and woven sub-sectors respectively.

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Table- 4.8(b) Projected Demand of Fabrics for the Domestic and Export through RMG Industry(2008-09 to 2014-15): Realistic Variant

Fabric in mln. mtr. & Yarn in million Kg Growth rate Projected Demand of Fabrics & Yarn Total

FabricsTotal Yarn

Domestic Market(Growth Rate

8.4%)

Export through RMG Year Knit

(Growth Rate 24.75%)

Woven(Growth Rate

11.67%)

Sub-Total

2007-08 (Base year) 2,742 4,221 2,738 6,959 9,701 1,617

Projected :2008-09 2,915 5,004 2,978 7,982 10,897 1,8162009-10 3,098 5,933 3,238 9,171 12,270 2,0452010-11 3,294 7,034 3,521 10,556 13,849 2,3082011-12 3,501 8,340 3,830 12,170 15,671 2,6122012-13 3,722 9,888 4,165 14,053 17,774 2,9622013-14 3,956 11,723 4,529 16,252 20,208 3,3682014-15 4,205 13,899 4,925 18,824 23,030 3,838

Assuming yarn fabric ratio 1:6.

4.2.9.3 Demand-Supply Gap of Fabrics & Yarns

The demand of fabrics which was 9,701 in 2007-08 will rise in 2014-15 to 30,523 million meters as per optimistic expectation and to 18,824 million meters as per more realistic variant. In the same way the requirement of yarn may rise to 5,087 million kg and 3,838 million kg respectively.

Assuming the present capacity static, the demand of fabrics and yarns by 2014-15 will be as shown below:

Change of Demand of Fabrics

0

5,000

10,000

15,000

20,000

25,000

Domestic Knit Woven

2007-08

2014-15 (Optimistic)

2014-15 (Realistic)

Mil

lion

Me

ters

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Table- 4.8(c): Demand Supply of YarnFabric in mln. mtr. &

Yarn in million Kg

Year Domestic Knit WovenTotal Fabrics Total Yarns

Supply of 2007-08 1,502 3,587 711 5,800 967Demand of 2014-15 (Optimistic) 2,915 5,004 2,978 10,897 1,816Demand of 2014-15 (Realistic) 4,205 13,899 4,925 23,029 3,838Demand-supply Gap at 2014-15 (optimistic variant) 3,321 16,184 5,218 24,723 4,121

Demand-supply Gap at 2014-15 (Conservative variant) 2,703 10,312 4,214 17,229 2,872

If no capacity is created, the demand-supply gap would be in excess of 24 billion meters of fabrics in 2014-15 and in excess of 4 billion kg of yarn. Even in very realistic option, the demand-supply gap is supposed to be in excess of 17 billion meters of fabrics and closely to 3 billion kg of yarn in the aforesaid year.

But this does not depict an actual picture of demand-gap supply by 2014-15; some capacity will be created by that time and according some additional supply of yarn and fabrics will be made from the domestic source.

To estimate the more realistic demand-supply gap let us assume that: in the future (by 2014-15) some capacity will remain left for import of fabrics and yarns, naturally;

and as such the planned production volume is not likely to exceed 85% of the fabrics needed for domestic purpose given that domestic supply is directed to meet only 55% of the requirement. Similarly, it may be planned that that some 90% and 50% of knit and woven fabrics will be produced locally (as against present 85% and 26% production for those sub-sectors). In that case we will have to produce in total 18,030 million meters of fabrics; also

the production trend in that time may follow the current pattern i.e. we would be able to produce only 55% of the need of domestic fabrics , 85% of fabrics for export oriented knit RMG and 26% of fabrics required for export oriented woven RMG needed.

With the above mentioned propositions, still huge volume of fabrics remains left to be produced through creation of new capacity, further.

Now even we assume the demand of fabrics in 2014-15 as per realistic option would be 23,030 million meters, the demand-supply gap of fabrics would be shown as under:

Table-4.9: Demand Gaps of Fabrics (million meters):

DescriptionBase Year (2007-08) Projected for 2014-15

Domestic

Export Total Domestic

Export TotalKnit Woven Knit Woven(i) Demand 2,742 4,221 2,738 9,701 4,205 13,899 2,463 23,030(ii) Domestic Actual production/

Production Plan (as % of total demand)

1,502(55%)

3,587(85%)

711(26%)

5,800(62%)

3,574(85%)

12,509(90%)

1,970(50%)

18,053(78%)

(iii) (-) Production with existing facilities

1,502(55%)

3,587(85%)

711(26%)

5,800(62%)

2,312(55%)

11,814(85%)

640(26%)

14,767(64%)

(iv) Remaining Fabrics to be produced through creation of new capacity [ii-iii]

- - - 1,261 695 1,330 3,286

It follows from above table that even we manage to make similar historical success in creation of new capacity over the years from 2007-08 to 2014-15 with the existing tempo of production pattern, still we will face a demand gap of 3,286 million meters of fabrics and 2,872 million kg of yarns by 2014-15.

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5.1 Introduction:

Global textile & apparel market is very much dynamic and is characterized with frequent milestones of change that by and large is associated with the technology and various global treaty and agreement, not to speak of design aspect of products, manufacturing costs, pattern of supply chain, etc.

Apart from turning out the designed product, the purposes of technological change are to: enhance productivity and reduce production cost thereby; improve quality to add more value to products; and increase flexibility in terms of operational and design aspects.

Historical evidences, growth model and economic theory all confirm that technological knowledge is the most important single factor that contributes long-term productivity and economic growth. As a matter of fact, technological change is a form of learning as how to solve specific problems in differentiated and rapid changing business environment.Changes of technology certainly bear impact on local, regional and worldwide industry, and it is also true that technology should always be market driven in the business. So, future PT plan should be based on the direction of technological change horizon, along with many other relevant issues.

5.2 International Market Dynamics and the Perspectives of Technological Change:

Correct anticipation of the needed technological change of Bangladesh textile to face post MFA era depends on accurate presumption of the post MFA scenario on short and long terms basis. The major dynamics that would play decisive role in the international market are discussed shortly below.

Labour cost: In the competitive global market, there is a strong competition for product cost minimizing, which finally concentrates on labour cost cutting & optimization of power consumption. Bangladesh is at far behind the countries paying highest labour cost for PT industry. As evident from the data of Werner International (Primary Textile Labour Cost Comparisons), the labour cost (average cost per operator hour) in Bangladesh Primary Textile sector is roughly 50 to 100 times less than richer EU nations like Switzerland and Germany , 30 times less than USA, 3 times less than Thailand and 15-20% less than India & Sri-Lanka. What Bangladesh has to do is to rationalize its labour cost with productivity so that its labour cost remains meaningfully low in the global market. So, Bangladesh has a scope to go for labour-intensive manufacturing for more 5-10 years. However, this does provide scope, in any way, to escape technological changes in terms of higher machine speeds, quality perfection, design versatilities, safety, automation, etc..

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Anticipation of Technological Change Needed for Bangladesh PT Industry to

Effectively Face Post-MFA Era

Tariff and Regional Trade Agreements: Since Bangladesh Primary Textile is heavily dependent on export oriented RMG industry it might suffer negative consequences of quota out-phasing in the post MFA era. Such a general apprehension existed strongly few years back with the proposition that the apparel buyers will be at liberty to source textile goods at cheaper sources and Bangladesh may be overlooked for the cheaper textile goods suppliers like India, Pakistan and China. But already Bangladesh has witnessed 3 years of post MFA era without any adverse impact on RMG on PT sector. Most experts believe that Bangladesh’s cost advantage and adaptability of the needed new technology both are playing key role to cause the things happening in other way around.

Quota under the terms of agreement of textile and clothing (ATC) ended in 2005, but tariff is established within bilateral agreement and that will remain to exist. Bangladesh is not included in such lucrative bilateral agreements as NAFTA (North American Free Trade Agreement), CBPTA (Caribbean Basin Partnership Trade Agreement), ATPA (Andean Trade Preferences Act), CAFTA-DR (Central America-Dominican Republic-United States Free Trade Agreement), etc. The only privilege that Bangladesh RMG export now enjoys is the generalized preferential system (GSP) in EU market, which is also likely to be revised by changing to single stage instead of present 2-stage manufacturing, keeping no concession for Bangladesh Primary Textiles since 2010. In that case, Bangladesh PT industry should gear up self to at per its different competitors in the world and neighbours like India and Pakistan in terms of product cost and has to keep South & Central American competitors behind.

India and Pakistan have locally produced raw materials that Bangladesh has to procure from international market. In terms of labour cost and utility cost Bangladesh stands with them almost at same height. On the other hand, because of close proximity, South & Central American competitors are naturally advantageous on transportation & lead time issues. So to equalize own position with them, or to topple them, Bangladesh has no other way but to leave them a little behind in terms of technology, quality and supply chain.Supply Chain: The challenge of supply chain management (logistics and transportations) is to attain the ability to make delivery of right goods at right time to the market at possible lowest cost. However, in the global market, the companies now like to meet customer satisfaction by selecting specialized, reliable and highly competitive supplier. As a matter of fact, the textile chain has changed from supply chain to demand chain. In order to make in time delivery of the goods of customer choice in any country, it is essential to have joint forecasting, joint planning and joint inventory made by the both parties: suppliers and buyer companies. In such scenario, the first thing that the buyers will look at suppliers end is the technological preparedness of the suppliers and then to other aspects of different compliances starting from product design to social & safety packages.

Quality & Fashion: Both quality and fashion have found bearing positive corollary relation with the prices in the international market. Turning out quality or creating fashions, separately or together, need a combination of improvised skill with sophisticated technology. Compromise in any of these two areas may jeopardize the objectives of the deal of a supply chain.

In the market competition, therefore, Bangladesh PT has to prove its fitness in many areas followed by its preparedness in respect of modern technology. So, the needed technological change has to follow the change of global market in terms of product specifications or product diversity, quality and design at least.

5.3 Anticipated Technological Change in Different Sub-sectors of Bangladesh PT

It is utmost important to keep the global dynamics of technology while recommending the future-friendly technology for Bangladesh PT industry. Below we have made a concise discussion on this issue major sub-sector wise.

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5.3.1 Spinning

According to an article published in the Journal of Textile and Apparel Technology & Management (Vol. 2007), world fibres consumption is expected to change from 53 million Tons in 2000 to 74 million Tons in 2010 and 95 million ton in 2020. According to ITMF (International Textile Manufacturers Federation), within the very decade the consumption of cotton fibres is expected to change from 52% to 70% (with a zigzag trend for the fall of global cotton production in the years of 2001 to 2003); with the range of 25% to 42% for synthetic fibres in the same period of time; regenerated cellulose fibres comprise the rest percents.

Cotton spinning, with a slight setback in 1998-2000, increased from 17 million ton in 1995 to 24 million tons in 2004 and that is expected to grow matching with its consumption pattern. This indicates that the cotton spinning i.e., short staple spinning as in the recent past will prevail in the future too, at least by 2020, followed closely by the synthetic spinning or so-called long staple spinning.

Asia and Oceania produces roughly 75% of the cotton yarn produced in the world. China tops the list as alone accounting for 30-35% of the global cotton yarn production- followed by India, Pakistan, USA and Turkey, each producing in between 1.00 to 2.00 million tons of cotton yarn per annum. Bangladesh has been yet behind to reach 1.00 million ton target. So Bangladesh has a scope to create huge spinning capacity to produce cotton yarn, not to speak of synthetic yarn manufacturing capacity for which Bangladesh’s share is not even 1% of the global capacity. So future Bangladesh’s technological preparedness should include effort for enhancement of the both short and long staple fibers spinning technology.

Bangladesh has long tradition of ring spinning, which was historically confining mostly on medium and upper count, with the exception of recent few years when an increasing tendency is observed for concentration on lower counts in between 16Ne t0 30 Ne mostly to meet the demand of knitwear & sweater manufacturing. Bangladesh high-count yarn mostly target traditional handloom sector that does not have any scope for dramatic expansion in the near future. Bangladesh rotor spinning has only a single decade history; the rotor spinning units are yet poorly organized by structure and designed mainly to consume waste cotton to produce low quality yarn rather than consuming virgin cotton & improved blends to produce high quality yarn for various high value twill fabrics.

Regarding the answer to the question as what should be Bangladesh’s future technological approach in spinning, one should bear in mind that some 80% of all machines throughout the world produce yarn in the count range from Ne 5 to Ne 30, with modal count range 18 Ne-30 Ne. Three (3) spinning technologies namely ring, rotor and air-jet spinning with their different focus on applications cover almost the entire range of the yarn fineness. While comparing machine productivity by type of technology, a rotor can produce up to 7.5 times a ring spindle can do. An air jet frame can produce nearly 14 times and a vortex frame can produce up to 18 times more than a regular ring frame. But vortex spinning cannot produce enough stronger yarn. Therefore, For higher productivity of yarn and for efficient space utilization, in the future Bangladesh has to increasingly go for rotor and air jet spinning with increased focus on low to middle count. Also limited use of friction spinning (DREF System) can be thought for the near future, in particular to produce novelty yarn with the mixes of jute and cotton with manufactured fibres.

The partial cause of low contribution by Bangladesh PT to woven sector is also due to our deficiency to spin quality warp yarn using ring-spinning system. This is purely a technology management issue that has to be dealt seriously in the future with more technological knowledge and skill. Also Bangladesh needs deepening of its spinners’ knowledge and enhancing their skill for long staple spinning with the inputs like polyester,

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acrylic, nylon, viscose lyocells, elastomeric fibbers, etc. or their mixes. And accordingly the hardware specifications should be redesigned for new units to be setup.Since garment waste recycling is on the verge of expansion and its fibbers are being spun in a very crude way in the informal sector, the needed technological modalities have to be designed along with selection of efficient technological hardware chain and right process parameters for turning out effectively utilizable yarns from the wastes.

Bangladesh should also go for fibres or filament spinning by producing the respective polymers. But this needs giant investment in addition to cheap price of gas or abundance of petroleum bi-products at cheaper costs. Introduction of polymer-based fibres spinning technology is not a viable thinking of the moment as it is very much unlikely to manage all this to get in that way within next 5-10 years. However, producing fibres, filament, tow or top though melt spinning by using chips/pellets/granules are viable in Bangladesh and already there are some illustrations of the same. But such technologies being used have become now old in many cases and need replacement with the newer ones that are more productive and quality prone.

Since fashion yarns and the corresponding products are more value prone in the international market, Bangladesh should also go for production of various Integrated Multi-component Yarns such as integrated composite spinning (ICS) yarn, cover spun yarn, selfil yarn, ply yarns etc. By using some special attachments and twisting machines with the existing ring and rotor machinery more efforts should be spent to produce many demand oriented fashion yarns such as slub yarns, cabled yarns, flake yarns, spiral yarns, boucle or loop yarns, knot or spot yarns chennile yarns, etc.

Various types of high value mélange yarns for sweater and other knitters can be manufactured by using some special devices with the existing machinery chain of conventional rotor and ring spinning. Only knowledge and proper experiences are to be added there.

In the future, Bangladesh needs to adjust its long staple spinning technology for enhancing texturing effect to produce high value textured yarns. There is a need for qualitative improvement of high bulk yarn and loop bulk yarn (e.g., coiled, curled, crimped yarn, etc.) and stretch yarns (e.g., heat set fibers, bi & multi constituent yarns, electrometric, and chemically treated natural fiber yarn, etc.).

In filament spinning, particularly in respect of melt spinning technology, changes are to be brought to further improve the quality of un-drawn yarn (UDY), partially oriented yarn (POY), fully drawn yarn (FDY), etc. so that better textured yarn could be produced from them, finally.

Bangladesh export oriented spinning has been found very responsive to the new & productive technology of European origin (including Trutszler of Germany & Reiter of Switzerland, Savio of Italy) and developed Asian Sources like Japan (Toyoda), which is very costly. However, recently efforts of combining efficient but comparatively low cost Asian technology (mostly high grade Chinese machines namely ring frame, card and comber) with European technology have been found proven in many cases and such efforts should be encouraged in the future too. Of course, the best option would be rethink of spinning machine manufacturing by Bangladesh Machine Tools Factory with the foreign collaboration.

5.3.2 Weaving

Apart from lack of organization and coordination, Bangladesh weaving sub-sector is plagued by technological backwardness, capacity shortage and low capacity utilization, poor quality, low productivity, high cost of production, shortage of textures and designs. Technologically, Bangladesh weaving is tuned primarily to feed the domestic needs and secondarily to meet the needs of export oriented RMG units. However, since the last 10-12 years, the weaving sub-sector has successfully been turning out hometextile

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goods (mainly bed sheets and bed covers) for different developed nations’ markets. Over the last 5-7 years, the hometexitle based weaving is growing with increasing angular line.

Bangladesh weaving faces two-fold demands from both local and international markets. Local fabric market is expanding due to increase of population with enhanced per-capita consumption and change of taste. Global growth of woven materials and Bangladesh’s enhanced access to the global woven market has increased the demand potentiality for the country’s export oriented woven RMGs and direct export of woven goods.

Globally reputed “Research And Markets” estimates that fabric weaving consumes about 28 million tons of fibers per annum – equivalent to over half of the global textile market. Moreover, global production of woven products will grow by 25% between 2002 and 2010, reaching more than 35 mn tons. Some 85% of this growth will take place in Asia. The imports of apparel and textiles will rise from developed economies like USA and the western countries of Europe and Japan, along with some newly emerged economies, such as South Korea and Taiwan. Certainly, import growth there has witnessed high angular vertical rise in the previous years.

The rising folds of demanded fabrics can grossly be classified into:

Fabrics for apparels

Hometextiles

Technical textiles

Woven fabrics are widely used in apparel assortments, starting from shirt, trousers, tops, shorts/skirts to innerwear, outerwear, nightwear and underwear, as well as in specialized apparels like protective clothing and sportswear & swimwear. Home textile also contributes considerably in woven fabric in products assortments like curtains & windows, various furnishing fabrics, tablecloths, bed & linens, carpets, mats, etc. The technical textile gamut includes products of various industrial applications including automobile and transpiration textiles, geotextiles, sailcloth - tent and fabrics used architectures, transportation and tarpaulins, fabrics for military and engineering applications, etc. Medical assortments (starting from bandage & protective assortments to apron, globes, tissue wrapping papers, and many things) that are also technical textiles, now often placed under separate title. Bangladesh could go for any or all of these items, as mentioned above, having rising demand in the international market.

But the existing structure of technology is acting as a barrier in making such ambitious trials. Bangladesh weaving technologically can be categorized as:

Primitive handlooms characterized with low speed (low productivity), narrow product ranges and defect potentials.

Decentralized weaving mostly with power driven shuttle looms (low speed, defect potential, high weft insertion cost, non-automotive, etc.) lacking adequate back and front process machinery; few of those have limited shuttleless looms.

Mill-sector weaving is generally balanced in terms of back and front process machineries. But with few exceptions, the most of these are technologically lagging behind with old generation or converted rapiers, second-hand projectile looms (mostly converted from brand shuttle looms) and old and less efficient air jet looms of lower speeds as compared to modern ones.

As a matter of fact, with this old technological content, Bangladesh weaving will not be able to reap high benefit out from the demand prone international woven market of fabrics and RMGs. Bangladesh weaving technology needs to be refurbished gradually with the new generation weaving technology in the future.

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To effectively compete with the Asian competitors, Bangladesh should have included in the inventory of weaving the following kinds of looms and attachments:

High Speed Air Jet Looms: In order to achieve greater competence Bangladesh weaving should have increased number of recently proven high speed (in excess of 2000 m/min RFI or 750 PPM) & wider width air jet looms to produce voile, acetate lining, mattress ticking, two panel sheeting, etc. in addition to the existing fabrics of demand in the market. Picanol, Toyoda/Tsudakoma and Promatech (Sommet & Vamatex) are the companies of the front line to manufacture these looms. Fitting staubli jacquard and electronic dobby increases the efficiencies of this looms to comply with higher quality and design norms of the upper pile of international market.

High-speed Water Jet Looms: Because of overwhelming dominance of cotton & CVC prone weaving, Bangladesh always was less interested for water jet looms. But the recent trend for increasing share of nylon, polyester and other hydrophobic fiber oriented fabrics in the orders of apparel (various dress items including swimming costumes & sportswear), home textiles and technical textiles (tents, umbrella, bags, etc.) is seriously pushing the weavers to consider the inclusion of water jet looms in the factory. Recently introduced Tsudcoma’s high-speed water jet loom for weaving taffeta can be a good reference. So to capture more share in the global and domestic markets, Bangladesh weaving technology should rethink of accommodating high-speed water jet looms.

Faster Projectile Looms: Because of unusual high cost of modern projectile looms, Bangladesh has limited number of projectile looms, mostly old (of which few are made in Russia under Sulzer license) and of medium width to form home textile and twill fabrics. But to compete with the countries like India, Pakistan, China, Indonesia, etc. and to be more completive in the global market, Bangladesh weaving should add Sulzer’s new generation high-speed looms (in excess of 1400 m/min RFI or 350 ppm), preferably the post 2005 models, having width up to 3.9 m.

Faster Rapier Looms: Rapiers looms are exceptionally good to produce fabrics of shirts and those needing simple plain texture. Apart from some 20% modern rapier looms, Bangladesh has quite a large number of old and refurbished flexible rapier looms but those are characterized with low speed. For the post MFA era competition, those have to be replaced by new generation rapier looms manufactured by Picanol, Vamatex, Sulzer and Dornier having speed in excess of 1400 m/min RFI and 450 ppm and width of the range up to 3.6 meter.

Multiphase Weaving: This is a new technology of weaving but gaining popularity all over the world for extreme high productivity (first revealed in ITMA’ 95 by Sulzer Textile’s). Because of its extreme high speed (in excess of 6000 m/min RFI and 3230 ppm), its labour costs decline drastically. The machine is proven for production of plain weave fabrics, including cretonne and twill. Bangladesh weavers also should carefully examine the operational viability of this machine for the purpose of technology transfer and to acquire the competence to compete with the weavers of the developed nations.

Loom Attachments (Accessory Devices & Equipment): As a matter of fact, attachments impart loom with design efficiency to ornament fabrics with eye-catching designs and thus add value to the fabrics and corresponding end products. As a part of technology change, sophistication of Bangladesh weaving with modern attachments is essential, in the post MFA era, to cope with the intensified competition with the present bulk suppliers of fabrics such as India, Pakistan, Indonesia, Thailand, Hong Kong and Mainland China.

In connection with this Bangladesh will have to accept new jacquard concept for new approaches for shed formation such as Grosse and UISHED and Staubli UNIVAL. Groose Unshed is jaquard system that is

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efficient for quick style change (QSC) in high-speed looms. Staubli UNIVAL (100) is an electronic jacquard shedding mechanism that forms shed by controlling each individual warp by a stepping motor.

Dornier has discovered on-the-fly automatic pattern change device on air jet looms that can work together with stauubli. Several companies have successfully devised pneumatic tuck-in-motion to hold the filling end and then to be tucked into the next shed effectively.

Similarly, Sumo Motor is a new development by Picanol that can be run with program. By using summo motor, the initial torque can be controlled and the start marks can be significantly reduced. Sumo motor is extremely helpful for weaving with different filling yarns.

Needle Punching Machines: Needle punching machines are getting success day be day to produce needle fabrics that are being used mostly for technical textiles

The change technology of Bangladesh weaving should accommodate provisions for attachments and needle punching machines too.

To make handlooms completive in the domestic market and to enable it to export in the global market, some modifications have to be made to augment productivity by vitalizing weft insertion motion and to improve quality by attaching modern attachments.

5.3.3 Fabric Processing

Apart from 359 semi-mechanized and mechanized factory grade processing houses, Bangladesh fabric-processing sub-sector is characterized with innumerable unorganized cottage type dye-houses, scattered in urban and rural areas, mostly based on traditional handlooms and hosiery industries.

Given that cotton comprises more than 50% of the fibers consumed globally, naturally Bangladesh is a place where cotton textile or cotton processing prevails over the others.

In case of woven fabric processing, the number of units capable of supplying high quality woven fabrics for global market is not more than 3 dozens. The local process houses can meet only 20-25% requirement of the woven cloths demanded by the export oriented woven RMG units.

Except few exceptions, Bangladesh products lie in the bottom pile of the global market in terms of price. But in the long run, Bangladesh cannot effectively compete with these low cost products because labor cost is increasing, gas supply has reached a stage signaling shortage of gas and rise of energy/power cost, and also effluent treatment cost is going to further burden the processing cost. Moreover, while considering the change aspects of the technology, we should remember that the global trend lies in the increased emphasis on the production of higher-value textile goods. The high-value textile goods can be produced and successfully marketed by efficiently addressing the following issues in combination with skilled human resources:

Modern technological hardware High value dye and chemicals Energy & water savings Effluent treatment Recycling

The approach of future technological change, therefore, should bring the above issues in the center of the focus.

Why high value dye chemicals?

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Apart from the insistence for complying with OKOTEX requirements, the Regulation for the Registration, Evaluation, Authorization and Restriction of Chemicals popularly known as REACH has already been enforced in EU on June 1st 2007. This Regulation will bring major changes in the global chemicals industry mostly for manufacturers and importers of substances and preparations into the EU. Similar laws are there in USA, Canada & Austrailia; Japan also has the standard of similar nature. Further, the trend towards increased environmental consciousness is going to influence this market in the most important way. The countries that are constantly developing environmental friendly processes and chemicals will be gainers in the process.

Firstly, the textile companies around the globe are adopting innovative ‘green’ fabric processing techniques to bring natural fibres environmental footprint inline with sustainability goals in the world market. On the other hand, there is now a global trend of increased emphasis on the production of higher-value textile goods irrespective of fibres origin. This needs quality dye staff and chemicals that are in conformation with the growing environmental regulations. Naturally, this will promote the use of more expensive chemical dyes and finishes, which will result in gaining market value.

Already many less developed countries like Vietnam, Sri Lanka, Pakistan and India have started using higher value dyes and chemicals so as to meet standards in important export markets. Bangladesh dye houses have to think of this issue matching with the existing pattern of supply and anticipated global market.

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Energy & Water Savings:

In the future, the gas price or cost of electricity is likely to increase because of possible shortage and/or its diversified uses along with more cost efficiency. For example, use of gas/electricity is economically more efficient in ship building, vehicle manufacturing, or mineral exploration, or even in agriculture than textile. All this finally would cause the processing cost to increase in the future. Bangladesh processing houses in the future should be very calculative in regards of economic consumption of energy and effective recycling of the same while selecting technologies.

Similar is the case with water. Use of more water means increased cost of water sourcing and water treatment; more consumption of water will call for enhanced scale of effluent treatment that again will cause more energy to consume and finally burden the product cost. Reduction of bath ratio is one of the technological ways to reduce water consumption. It is to be remembered that consumption of water depends on type of fiber; for example polyester processing needs almost 50% water. So, the technology as well input materials (fiber) should be selected considering all aspects so that processing becomes finally viable at the costs incurred for water and recycling of polluted water.

Effluent Treatment

Inclusion of effluent treatment plant (ETP) in a dyeing house is now under international as well as native governmental compliances. Hardly a nation will endure any business harmful to public health vulnerable to sanitation system and ecology. On the other hand, international market will be putting non-tariff barrier to export of the products produced by any non-complaint industry. So, it is a daylight reality that all the dye houses should have active ETP selected or designed so as to cut effluent treatment costs at possible lowest.

In connection with this, support to the local institutional effort for biological treatment plant should be augmented. Initially the combination of imported technology with the local ones should be examined to design and implement appropriate and cost effective effluent treatment technology.

RecyclingRecycling in textiles involves materials in addition to water and energy. Technology of recycling of textile waste products and applications of recycled textiles are the matters now bearing immense importance. In the countries of the developed nations the recycled textile products are used in wider area of life including in the operating theatre, for soil stabilization and in concrete reinforcement.

Recycling in textiles presents several promising technologies and ideas. An increasing amount of waste is generated each year from textiles and their production. For economic and environmental reasons it is necessary that as much of this waste as possible is recycled instead of being disposed of in landfill sites. The rate of textile recycling is still relatively low in Bangladesh but is believed to increase considerably in the years to come. According to the knowledgeable sources, on average, roughly 1 to 2 lac tones of textile wastes are currently dumped in Bangladesh but what extent being recycled is not properly known.

Considering the diversity of fibrous waste and structures, several technologies must work in the future in an integrated way in order to increase the rate of recycling.

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Needed change in Modern Processing Technological Hardware

Wet processing technological machines vary depending on the type of processing treatments to be given namely, dyeing or printing or complex of both; whilst the outputs in each case have to undergo finishing treatment. So, ideas of possible technological changes have to examine these specific areas, as discussed below.

New Technological Avenues for Dyeing Machines: Bangladesh woven dye houses having export experiences are introduced with all conventional dyeing such as rope or beck dyeing, jig dying, jet dyeing, pad batch dyeing, etc.The recent trend of using high temperature machines instead of mere atmospheric temperature machines is a good sign of changing dying technology in the positive direction by the dye houses.The required change area for processing hardware is exhaustive and needs larger space to discuss. Here we discuss on a few of those.In Bangladesh, jig dyeing is mostly conducted in open bath, which has to be closed increasingly in the future. For future of jigger, the local dye houses should look at recently introduced new fabric-dyeing machines analogous to Italy-based Brazzoli S.p.A. (Innoflow® EXL and Multiflow® MUST) with its patented transverse dyebath circulation with a 1:3 liquor ratio, leading to greater efficiencies in dyeing and washing.In the future, the indigo and other dying machines should be more electronic and computer controlled based (e.g., Slasher of Moenus-Sucker, Morrison with its Spectrum™ Indigo Dye Box) with a new automatic program for dosing dyes for improved shade control through monitoring and alarming.For the futuristic example of continuous dyeing, Bangladesh dye houses may look at similar efforts made by Küsters that invented an improved S-Roll having electronic pad pressure control and a new rubber coating called BlueNip with better chemical resistance. The Küsters Dye Pad with two new S-Rolls provides the dyer with an expanded pad pressure range and online control of the padding process.

Interesting may be the Benek’s (Turkey) offer to control the dyeing process with heat exchangers optimized for batch size is excellent and also something new to be studied.

Exciting new development in indigo dyeing has been made by Gaston Systems Inc., Stanley, N.C., USA. The formula N process applies foamed reduced indigo to de-sized fabrics. Multiple foam applicators operating under a nitrogen atmosphere produce indigo dye effects on a variety of fabrics with lower capital investment, operating costs and effluent treatment costs than other processes while offering greater styling potential.For bringing improvement of piece dyeing, it would be interesting to examine Fong’s Jumboflow and Eco-88D piece-dyeing machines. The Jumboflow can dye up to 280 kg per dyeing tube — up to 12 tubes — with an extremely efficient heat exchanger, and allows the cooling and rinse cycles to be combined, saving water, time and energy. The Eco-88D is designed for light- to medium weight fabrics made from man-made fibers and has two dyeing compartments in a single-tube machine. Spray nozzles inside the dyeing compartments reduce friction between fabric and metal and lessen fabric defects arising from fabric rubbing bare metal.

For delicate fabrics and fabrics with high levels of elastane dyeing machine with Airflow technology is a new illustration. “Airflow Lotus” made the latest development in this area. This dyeing machine is specially designed to dye light fabric with reduced water and energy requirements. For another example of newer technology to dye delicate fabrics we may refer to Athena H fabric-dyeing machine, the latest development of Sclavos S.A., Greece, which also offers low operating costs and reduced water and energy consumption.

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Thies GmbH & Co. KG’s of Germany has been able to reduce the amount of water needed for dyeing in its product line of fabric- and yarn-dyeing equipment displayed, which included the Luft-Roto short-liquor dyeing machine, (HT/AT jig).

Apart from new technological hardware, there have been revolutionary changes in the pattern of process itself. Bangladesh dye houses should also look at these changes. For example, using of ultrasound technique introduced by Sokolov and Tumensky and subsequently evaluated by Brauer as an alternative as compared to conventional textile processing. Many progresses have been underway to make dyeing highly cost-economy.

The prospect of nano-technology in dyeing is very hopeful and Bangladesh processing houses should monitor closely the exploitation economy of the technology in Bangladesh under the changing global market context.

The 3D dyeing has been increasing globally; Bangladesh should augment gradually the 3D (Garments washing) dyeing capacity for local and international market in the future.

It is worthwhile remembering that an efficient dyeing is possible when the very accurate colouring effort is itself supported by matching pre-treatment/pre-colouring and post colouring/finishing technologies.

Also there are many things involved with the dyeing technology: proper selection of dyes & chemicals, correct treatment of water, strong process control with correct formulation of recipe, etc. For example with the introduction of a new silicone softener, Midland, Mich.-based Dow Corning Corp. hopes to reduce the amount of water it takes to process denim fabrics. Dow Corning® this type of process technological information is to be updated and disseminated regularly.

To be efficient in terms of optimal recipe formulation, Bangladesh dye houses should go for enhanced use of laboratory dyeing machine that accurately simulates production. New generation colour kitchens and modern testing equipment including high resolution spectro-photometers, electrolyte testers and arrangement for various chemical testing should be included in the inventory of dye houses.

As a matter of fact, huge space is needed to provide examples. It is for this reason, the evolutions from all the international trade fairs including the famous ITMA, international technological reports, research papers and patent information should be discussed in threadbare and the conclusions should be disseminated regularly among the dyers/colourists to cope up with the changing technological issues.

5.3.4 Printing

Bangladesh cottage processing houses have long tradition of practicing block printing and hand screen-printing. In the organized sector, the roller printing work started since Pakistan period and introduction of mechanized flat screen-printing started in 1980s only. As a matter of fact, the boom of export oriented apparel units and home textiles created enhanced scope of functions for rotary screen printing (a combined advantage of roller and screen) in Bangladesh since the middle of 1990s. Although there are some jet spray printing machines in some large processing houses, but further investigations have to be made to detect the presence of micro jet printing, capable of producing high value printing outputs.

The manufacturers are increasing machine speeds for enhanced productivity and width too meet the requirement of the markets, apart from changing attachments and accessories for qualitative improvement of printing. Over the last decade, quite remarkable changes have taken place with the design and perfection of ink jet and other conventional dyeing machines by a number of manufacturers (e.g., Hangzhou Kaiyuan Computer Technology Co. Ltd. of China, Italy-based Monti Antonio S.p.A., Zimmer Textile

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Technology GmbH of Austria, DuPont Imaging Technologies, Stork Prints BV, Italy-based F.lli Robustelli S.r.l. etc.) assuring a high level of quality and reliability. But these changes have yet to cast shadow on Bangladesh fabric printing.

Although there is little practice of conventional heat transfer printing, there is no evidence of infrared heat vacuum transfer printing and wet heat transfer printing that can turn out quality print on cotton/natural fiber blended materials. There is also no vivid presence of TAK dyeing process that can produce random coloration on fabric, producing printing effect. Likewise, there is presence of converted forms of photo-printing, but no presence at all of the modern digital printing that has an emerging market in USA and other countries of developed nations. Digital textile printing is advantageous for sampling, strike-off, and mass customization; it can drastically reduce turnaround time for sampling from six to eight weeks with traditional technology to perhaps just a few days. The newer digital printing technologies open things up for a wide variety of incremental applications.

For the purpose of improvement of printing, Bangladesh is to study Pigment inks from Yuhan-Kimberly Ltd., Korea, referred to as “nano” inks because of their very small particle size of less than 100 nanometers. This small size allows for a high level of color saturation in prints. The Yuhan-Kimberly UJET MC2 printers uses these inks, unique fiber-reactive inks, and acid & disperse inks as well, to provide flexibility and economy in printing a wide variety of fabrics. For safer production at textile mills, as well as consumer safety — for example, the new formaldehyde-free Helizarin pigment printing system is also interesting from the point of view of technological progress.

Bangladesh is yet to stand at per India or Pakistan in terms of high value and safe printing jobs, not to speak of the countries of developed Asian nations & Europe. Bangladesh fabric printing is yet to be introduced with many types of printing technology capable of turning goods having demand in the upper pile of the global market.

5.3.5 Finishing

As compared to the nearest competitors like India, Pakistan, Sri Lanka and China, Bangladesh is technologically lagging well behind in fabric finishing. Among various causes, this is also a reason that Bangladesh woven apparel is not being well supported by the local textiles in terms of quality & high value weave texture. On the other hand, free flow of Indian printed clothing materials to the local market through different paths is also a factor discouraging the local investment for the costly high technology, as understood from the interaction with the printers.

Nationally and internationally, effects and functions are still a hot topic. Today, most consumers expect a garment to offer some functional features. As a result, the demand for functional textiles for wrinkle-free, antimicrobial, and anti-stain and soil finishes is increasing. Proper change approach is to be taken to make Bangladesh finishing industry equipped those technologies.

The possible change technology perspectives in finishing could be more understood by the recently developed finishing machines. For example, Zephyra ZM 60 air-jet finishing machine of Alliance Machines Textiles, France, which processes all types of woven and knit fabrics in rope with air nozzles to transport the fabric through the machine at very high speeds (800 m/min) with providing an efficient, tumbling action. The machine can handle both dry and wet treatments. Multifinish air-jet finisher of Flainox S.r.l. Italy, can treat cord and other hard fabrics with impressive degree of softness without beating the fabric against grills or sections.

French manufacturer Dollfus & Muller has a new machine for compacting felt denim and other hard textured fabrics with improved hand and drying. Lemaire S.a.r.l., France, offers a range of calendars that can be

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used for transfer-printing, laminating, heat-setting, metal foil lamination, waxing, calendering and heat-bonding. The company offers six ranges of differing widths, roll diameters and speeds. Morrison’s YieldMAX™ software works with sanforizors and compressive shrinkage ranges to better control shrinkage. Biancalani S.p.A., Italy, has its Airo® series of high productive finishing machines working at 200c can improve dramatically hand on printed textiles and offers an environmentally friendly option (because it does not use chemicals apart from optional softeners)

In the near future, for improved shrinkage and drying treatment enhanced use of such equipment can be anticipated as: Fong’s Shrinkage Dryers (BSDs) that operates from widths of 2 to 3.2 meters and can handle 190 to 1,300 kg/hr, respectively; Germany-based Brückner Trockentechnik GmbH & Co. KG.’s tenter (offering the highest performance in drying with energy-saving concepts); and new Montex 7000 TT (Monforts Textilmaschinen GmbH & Co. KG, Germany) is a completely new finishing concept specifically developed for coatings and technical textiles to provide the highest product quality with absolutely uniform drying. Latter has a large number of improved and new mechanical finishers, ranging from sueding machines to open-width compactors. That also has made improvements in its Ultrasoft sueding machines, which come in models for open-width woven and knits, tubular fabrics, and high-speed open-width.

Santex Group International AG, Switzerland is an open-width compacting machine with the fastest and highest-performing compactor ever made. It performs well on knits and woven alike.

Italy-based Unitech Textile Machinery S.p.A.'s Comet division now offers its new Pegasus X3 patented brushing machinery with brushing options for all open-width and tubular fabrics and is the only machine on the market that can do both with no changeover required.

Larger radio-frequency (RF) dryer of Italy-based Stalam S.p.A, high-pressure of Italy-based Loris Bellini S.p.A dryer, Unitech's Pentek division promoted its enAIRgy XL tumbling and new Trippo tumbling dryer (exclusive continuous tumbling process) are technologically improved dryers that will be replacing the existing types in the future.

Apart from these, use of finishing machines for grinding, roughing, shearing, stone-wash of existing and new technology will increase in the future.

The above-mentioned changes in technologies are indicative ones, which have to be taken into consideration in designing new mills or for BMRE purposes.

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6.1 Strategy for New Capacity Creation

There are many factors to be considered for creation of new capacity. Of course market is the prime factor that is often measured in terms of demand-supply gap provided other factors remain supportive. We have earlier determined the demand-supply gap as shown below.

Fabrics in million meters and yarn million kg

Year Domestic Knit Woven Total Fabrics Total YarnsDemand-supply Gap at 2014-15 2,703 10,312 4,214 17,229 2,872

One can determine the needed manufacturing capacity against the above mentioned

demand-supply gap directly in the way shown below.

Sl. No. Type of Textile Processing Industry Demand Gap Number of unit to

be built up1. Spinning Unit (25,000 spindles/unit with 4.6 million kg capacity

each) 2,872 million kg 624

2. Weaving (120 shuttleless looms/unit with 13 million meter capacity each)

2,703+4,214 =6,917 million meters 532

3. Knitting and Knit-Processing (1,725 tons per year) 10,312 million meters 996 4. Woven Fabric Processing (20 million meters annual capacity per

unit) 6,917 million metres 346

It is uncontroversial to favour opinion for further capacity building given that the existing and the anticipated demand-supply gap is so high. But, it is never a wise strategy to go for 100% capacity creation. Because nowhere in the world one can find 100% capacity is created against the demand gap. Naturally everywhere there remains certain gap met out of import. So, we also suggest considering the following issues in creating the capacities:

Bangladesh should go for creating a part of the capacity to make the PT industry self-reliant gradually with specific incremental target over spited periods of times say within successive 5 years frame of time.

Greater incremental target can be put for domestic production, given that that we have demand prone inbuilt domestic market having more reliable supply chain; enhancement of domestic production also helps bringing the balance of payment in our favour through reducing import dependence.

Comparatively lower incremental target should be put for production of fabrics for the export oriented RMG units, because demand necessitated by this market is bigger and the investment needed to create matching capacity is not overnight manageable; also the expansion of this market dependent on series of factors including some uncertainties.

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Strategy to Make Bangladesh PTS

Gradually Self-reliant

The yarn manufacturing capacities should be matched with the capacities of fabric production and fabric processing.

It may be assumed that over the next 5 years gradually the sector will produce 84% fabrics against the domestic needs of fabrics, 90% of the fabrics needed for export oriented knit industry and 50% of the need of the export oriented woven RMG industry. But at the same time, the new capacity creation as per historical trend may follow the historical pattern of production too( i.e., the sector if then also produces 55% requirement of domestic fabric, 26% for export oriented woven RMG and 85% of the knit RMG with the then available capacity ). In that case, the scenario of actual demand gap may be as under (refer to table 4.9):

Table-4.9: Demand Gaps of Fabrics (million meters):

DescriptionProjected for 2014-15

Domestic Export Total Total FabricKnit Woven

(i) Demand 4,205 13,899 2,463 23,030

(ii) Domestic Actual production/ Production Plan (as % of total demand)

3,574(85%)

12,509(90%)

1,970(50%)

18,053(78%)

(iii) (-) Production with existing facilities 2,312(55%)

11,814(85%)

640(26%)

14,767(64%)

(iv) Remaining Fabrics to be produced through creation of new capacity [ii-iii] 1,261 695 1,330 3,286

Yarn to be Produced 548 million kg

To cope up with the shortfall of yarn and fabrics by 2014-15, apart from regular growth of the industry, the following number of units will be needed to be created further. And the country should have the preparedness for that.

Sl. No.

Type of Textile Processing Industry Demand Gap Number of unit to built

up

Estimated Cost per Unit (million

taka)

Total Investment Cost

(million taka)1. Spinning Unit (25,000 spindles/unit with 4.6

million kg capacity each)548 million kg

119800 95,200

2. Weaving (120 shuttleless looms/unit with 13 million capacity each)

1261+1330 =2,591 million meters

199

500 99,654

3. Knitting and Knit-Processing (1,725 tons per year)

695 million meters 67

200 13,400

4. Woven Fabric Processing (20 million meters annual capacity per unit)

6,917 million metres 130

600 77,730

Total 2,591 million meters 119

285,984

Thus, by 2014-15, GOB has to create environment and make policy for financing by banks with minimum equity and interest rate. So that entrepreneurs come forward to invest in PTS. In addition govt. has to take positive steps for bringing FDI. Total financing need is taka 286 billion for establishing 119 spinning mills, 199 weaving factory, 67 knit and knit dyeing units and 130 woven processing units to meet the demand.

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6.2 Investment & Cost Reduction Strategy

There is no way to create needed capacity without having the necessary investment arranged. It goes without saying that any investment has to bring satisfactory return. For any investment, return from any manufacturing is directly proportional to the output’s sale price and inversely proportional to conversion cost of the output. The prices of both inputs and outputs in the open market systems vary a little giving least chance of becoming huge gainer except some breakthrough. Comparatively better scope to bring good return on investment lies in cutting the conversion cost by reducing cost of utility (power, fuel & water), interest, labour cost without compromising productivity and quality and various ineffective expenses.

If we look at our cost structure, we see unusually high is the impact of interest on the

conversion cost due to higher bank interest, to the extent of 14-17% per annum, on

borrowed capital. This is further burdened by greater equity sharing by the

entrepreneurs (40 to 50%). With these are much advantageous our competitors and

other countries. Loan offer with low of interest (@10%-11%) per annum by some

public sector Banks, only for export oriented industry, is quite tiny in comparison

with the demand of the investors. Moreover due to shortage of fund and various

other reasons, these loans are characterized with unusual delay in loan processing,

high equity proportion and extra procedural formalities. As a matter of fact,

Bangladesh PT sector should be given term loan and working capital loan @ 6-8%

per annum to sharpen it manufacturing competence with the Asian competitors.

Bangladesh India Pakistan ChinaInterest Rate

14-17%(Private Bank)9-10% (Public Bank)

5%(Market rate 10.25%)

7.75%-13.25% 5.58-6.66%

In solving investment related hardship, we may learn lesions from our competitors as well as neighbour India that has almost same social & business configuration. The Government of India (GOI), Ministry of Textiles (MOT), introduced Technology Upgrdation Fund Scheme (TUFS) for Textile and Jute Industries on April 1, 1999, initially for a period of 5 years, subsequently extended by 3 years to cover sanctions up to March 31, 2007. TUF, a federal scheme that offers 5 percent interest subsidy for expanding textile firms. The scheme was undertaken to provide massive investment support to meet the targeted output of $85bn by the end of 2010, aiming exports of $50bn. There is huge development foreseen in Indian textile exports from the $17bn attained in 2005-06 to $50bn by 2009-10. Of the total loan disbursements of Rs 27,500 crore, 45 percent has been accounted for by the spinning sector, while garmenting and processing sectors have received just Rs1,227 crore and Rs3,034 crore respectively. The Budget for FY 2007-08 has announced further extension of the Scheme by five years i.e to last till, FY 2011-12. Post-extension, the Scheme is under revision and sanctions (EOI has been called for recruitment of consultant) w.e.f April 1, 2007, have been kept in abeyance under TUFS.

Bangladesh PT sector is also suffering from shortage of loan from the scheduled Bank. So, a separate fund for upgardation of textile industry should be created by GOB so that Bangladesh PT & RMG sector can have the needed number of industry established under the loan facility with the interest rate not over than 8% (preferably at 6%).

To create the needed PT capacity in order to address huge unmet gap of demand-supply both for local and export purposes, a mammoth investment will be required which cannot fully be managed locally. So, the join-venture (JV) projects as well as direct foreign investments (FDI) are to be encouraged, apart from encouraging the local investors.

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Effort for cost reduction is a continuous process. Apart from low interest rate and low equity, there are other cost factors too. Rather targeting all at a time, initially it is wise to consider some prioritised cost benchmarks. For example, Bangladesh can initially target India & Pakistan’s those costs that are higher than ours as immediate benchmark, then gradually the others. For cost reduction in the PT sector, the best strategy would be undertaking comprehensive scheme for enhancement of productivity though providing skill training to all operatives and floor supervisors employed in the sector. Similarly, need based training for production management should be imparted to executive level technical staff. Another vital cost-cutting effort involves reduction of wastage to optimum level, which can also be attained through training of the techno-managerial staff.

Since in the PT sector, cost of raw materials alone accounts for 60-70% of product cost. Much effort should be spent to purchase raw materials at possible lowest prices. Only skilled marketing staff developed through modern marketing training can do this job very well. So facilitating strong marketing training in the PT sector would be another real strategic step in connection with product cost minimization.

The other cost boosting issues such as erratic supply of power and gas (low pressure and shortage of gas), transportation cost, port-efficiency, speed money, etc. cannot be dealt alone by the manufacturer/exporters; the government and the stakeholders have to go hand by hand to address these issues.

6.3 Strategy for Power/Energy Provision

As a matter of fact, Bangladesh spinning & other PT industries have been able to compete in the international market due to cheap labour and low cost of captive power generation by using gas. Against the shortage and erratic supply of power, Bangladesh would not have second option but to go for power generation by diesel. The cost of diesel based captive power generation won’t make spinning viable in Bangladesh.

Rough estimate is that currently the spinning sub-sector alone needs roughly 1500 to 2000 MW electricity, the lion share of which is generated under captive power generation. If the country goes for creation of the needed capacity of 2014-15, 2,000 MW electricity will be needed.

Now question is that how much is our reserve and how much will be possible to distribute, given that no clear cut study is at the table now to accurately figure out that. There is good growth of other industrial sub-sector including the potential agriculture & allied agro-industry sector, metallurgical sector, and many other industries apart from increasing consumption by automobile and households. All this has mammoth power requirement. In that case, to sustain the projected growth of PT industry provision for sectoral allocation of gas is essential.

In order to ensure the future industrial growth, the government has to decide which would be the most cost-effective and sustainable sources of electricity generation. Talking about solar energy is also far apart from the reality, at least for industrial sector because of its unusual high cost of generation. And this cost is not believed to come down to economic rate at least within next 10 years, the experts believe. So, the last option remains in hand is to generate power through nuclear facility. But Bangladesh has not yet taken any meaningful step in regard of this. Predicting the future growth the government should allocate some gas reserve for PT & RMG industry only so that these industries suddenly do not collapse for lack of gas/power. Side by side the government should undertake nuclear power project without further loss of time.

6.4 HRD Development Strategy

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The most effective and proven way to enhance human resource encompasses education and training. In Bangladesh, side by side the textile colleges some 6 private universities have started providing honours level textile education. Recently 4 textile colleges under DOT have started offering 4 years long B.Sc. courses in textile technology. On the other hand, the 6 textile institutes under DOT has been offering HSC level diploma education in textile & RMG disciplines, while in the same areas another 40 TVI under DOT is providing SSC level vocational education. There are 2 diploma colleges are also providing education in textiles. There is further need to standardize the educations of these institutions so that they can gather almost equal level of knowledge & skill to properly cater the need of the PT industries in the country. So a textile education coordination unit should be installed for monitoring textile educations and standardize the curriculum responding industrial needs of the PT sector.

For textile training, Textile Industry Development Centre (TIDC) was established in 1979 to provide skill development training to the technical and other personnel employed in the public sector Textile Mills. Continuous departure of the resource personnel from TIDC to private sector since 1994, lack of modern training hardware and computer based facilities and lack of efforts for strategic alliance with foreign universities and institutes having specialized experience in textile related fields are the major causes of the decay of its training capacity. With the boom of textile in the private sector, the GOB felt the necessity to refurbish the TIDC through strengthening its training capability and all other logistic supports to make it a center of excellence. Keeping with this end in view, GOB conceived the idea of converting TIDC into a national institute to serve the needs of the PT & RMG industry of the country. Accordingly a project namely, National Institute of Textile Training Research and Design (NITTRAD) was under taken. Further it was decided that the NITTRAD will be operating under a private & public management in bold cooperation with UNIDO. But so, far BTMA, the main stakeholder that was entrusted by the government to push the institute front has not been able to start imparting to training courses to the professionals & supervisory manpower employed in the textile sector. So the sector wants to see the government to be more vibrant to initiation of NITTRAD’s training activity.

6.5 Research Facilitation Strategy

EU-UNIDO sponsored study, conducted by PPMA (2006), unveiled it that Bangladesh industrial business culture, as a whole, is not yet conducive to in-house research capacity development since products are mostly of basic natures. But increasing involvement with global export business has started creating necessity for taking research support.

Our survey findings also echo with the recommendation of PPMA that for supporting the PT sector in acquiring more competence it is highly essential to conduct researches in the following areas: global and regional market research; products development; new business/project ideas; economic sourcing of raw materials and strategic marketing, innovative research towards maintenance (e.g., modernization and reengineering with local resources) and replacement, developing quality and productivity, friendly work norms, new work norms through experimentation of best work practice model in Bangladesh. Working environment; comparative analysis of different technologies; developing software for market research, inventory, production planning & controlling; fashion designing and simulation of production process; analyzing/measuring works and standardization of times; performance analysis & evaluation; e-commerce; developing smart manual for maintenance, cleaning/oiling, testing operations, industrial house keeping, work posture, labour safeguards, etc.; developing strategies against fire hazards, building collapse, and other disasters; improvement of in-shade environment; improvement of gender relation for better cooperation; etc.

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What we further would like to add that besides NITTRAD, the government should enable DOT’s institutions, in particular those offering B.Sc. courses, to conduct researches on the above mentioned areas.

Strategy for Accreditations Support to the Industry

EU-UNIDO sponsored study, conducted by PPMA (2006), Some 33% to 64% of the PT industry and 60% of the RMG companies have no lab facilities and no knowledge on standard testing activities. Most of them, unless is not pressurized by the buyers or falls in critical problems, continue avoiding the hassles of testing; under any urgency they go to BSTI, NITTRAD, SGS and other private testing service providers. Many industries (particularly RMG companies) have to send their specimen to foreign laboratories in Hong Kong, Germany and elsewhere for quality confirmation. Even, some capable companies having good testing facility also need to send samples for testing to overseas countries as per instruction of buyers, as some of whom seriously underscore local testing capability. As a result, the local companies are paying huge foreign currencies to foreign testing labs for the necessary testing certificates because the country do not have standard testing laboratories articulated with qualified & skilled personnel and as such is not accredited well internationally.

There should be strong and capable testing laboratory under NITTRAD and DOT, with skilled manpower and accreditation right. They should provide testing support to the industry at reasonable cost.

6.6 Effect of World-wide Recession on PTS

The ongoing global recession has already caught up with the country’s yarn industry with substantial falls in its local and export demands and a huge pile-up of unsold yarn. An increased import of low-cost yarn from neighbouring India will make textiles sector more susceptible to loan defaults. Easy access to import of the item from India at a cheaper rate has worsened the situation and increased local millers fear.

According to industry insiders, the spinning mills in the country worth Tk 27,000 crore are having difficulties with an inventory of 2.5 lakh tonnes of unsold yarn, worth Tk 2500 crore. Millers failed to clear stocks due to a decline in demand and a flood of comparatively low-cost yarn from India.

Earlier, yarn imports from India were restricted, but the caretaker government had withdrawn those restrictions allowing importers to act free. Manufacturers are now importing Indian yarn at 15 to 20 cents lower rates than the prices of local yarn on every pound.

To protect local spinning mills, the govt. should increase present 5% cash incentive to 10% for at least one year and their loan repayment should be relaxed or rescheduled.

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7.1 Abstract

The survey has been carried out to know the requirement of Textile Technologists at different levels and to recommend and suggest the ways to meet them in the shortest possible time. The demand and supply of the textile products have been found on the basis of the survey data of Textile Sector such as investment, installed capacities, manpower, import of required raw materials and machinery/spare-parts, actual production, etc; the domestic and export consumption of fabrics, RMG and other textiles have been estimated; gap between installed capacity and actual production, involved manpower present in the different textile sectors (industries, institutes and others) have been found out and then the present institutional capacity have been assessed.

The requirement of yarns (Cotton, Polyester, CVC, PC, Melange, Acrylic, Viscose), fabrics (Woven, Knit) and RMG are vast compared to attainable capacity. To fill up the demand-supply gap, a huge amount of investment (DI/FDI), capacity utilisation of the existing mills, skilled manpower (Textile Engineers) are needed. Present demand of skilled manpower (Textile Engineers) estimated has been assessed on the basis of machine to man ratio and load analysis carried out in selected case studies. (Ref. Scene)

Finally, a Computerized Data Bank/Database at DOT to update the current developments of above survey parameters has been established.

7.2 Introduction

In Bangladesh, Textile & Clothing sector plays a vital role in the growth of economy, the generation of employment (4.2 million people have been employed, which is about 65% of the country's employment) and in the earning of foreign exchange (77% of the national earning from export).

There are 5 prime sub sectors, such as Spinning, Weaving, Dyeing, Finishing, Knitting, Garments Manufacturing and 14 sub-sectors. Spinning mills produce about 678.6 M kg of yarn, which is used in handlooms, power looms, weaving mills, Knitting factories and specialised textile mills.

For rapid changes of the technology used, materials produced and applications in textile sectors, we need a large number of Textile Engineers. Textile engineers can work in the areas, like Production, Machine maintenance, Sales and Marketing, Procurement, Management Information System (MIS) of textile industry, Research and development, Quality control and testing organization, Educational Institutions, Banks, Customs, Trading house, etc.

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Evaluate the Manpower Employed in PTS & Estimate the Future Need of Manpower

& Institutional Capacity to Provide PT related training & Education

There are more chances to develop our textile periphery to recruit Textile Engineers in agriculture, geo-technology, biomedical, airplane, automobile, shipbuilding and sporting goods industries. The textile engineer is the professional who manages the entire textile enterprise that is responsible for wide range of products ranging from basic clothing to high performance textiles.

With the aim to meet this demand and also to strengthen the technological base of the industry, the DOT is in need of appropriate estimation of requirement of Textile Technologists.

In this study, we have assessed the requirement of engineers / technologists for textile sectors in the next forecasting 7-years time and the possible sources of these technologists.

The country has one public Textile College and some private universities producing a relatively small number of graduate textile engineers. As a consequence, the textile sector is fully dependent on the highly paid specialists from abroad. Therefore, we need a large number of textile engineers and specialists locally. However, the government has opened the Department of Textile Engineering at DUET and Mawlana Bhasani University to meet the ever-increasing demand due to globalization and technological development.

Within the last 10 years, a few numbers of Private Universities, such as, Ahsanullah University of Science and Technology, Prime Asia University, South-East University, City University & Green University of Bangladesh have established textile department to teach B.Sc. Engineering in Textile.

7.3 Problem and issues

Although textile sector is number one foreign exchange earner; most of the textile mills are running with poor capacity utilization in Bangladesh. Knowledgeable quarters opine that the most critical reasons for this poor capacity utilization is the lack of sufficient number of skilled Engineers for planning the textile industry. In the short run, we have to borrow Engineers from other countries; but this cannot be a solution for long term for the economic and technological growth of our country. As we have no textile machine and chemical manufacturing industry, we are always dependent on the foreign machinery as well as technicians. This dependence needs to be removed through development of these capacities locally.

7.4 Present status of the manpower in textile sectors

Bangladesh textile industry is acutely suffering from shortage of textile technologists. For example, the survey has covered 7,546 units, where 5,646 textile technologists were found employed. It means every unit has got on an average less than one Textile Technologist.

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Table-7.1: Summary Status of Existing Manpower in the Textile & Garments Sector

Sl. No.

Sub Sector Textile TechnologistsPh.D M.Sc./MBA B.Sc. Dip. Total

1 Spinning Industry 2 6 312 1275 1595

2 Weaving Mills 0 4 61 226 291

3 Composite Mills 0 3 33 67 103

4 Specialized Textile & Power Loom 0 1 0 5 6

5 Knitting Industry 0 5 404 645 1054

6 Terry Towel Linen Manufacturing Industry 0 0 12 60 72

7 Dyeing, Printing & Finishing (Mechanized) 1 3 484 492 980

8 Dyeing, Printing & Finishing (Semi-Mechanized)

0 0 166 160 326

9 Synthetic Yarn Manufacturing 0 0 6 12 18

10 Silk Industry 0 0 0 12 12

11 Sewing Thread Manufacturing Industry 0 0 1 1 2

12 Sweater Industry 0 0 55 106 161

13 Ready Made Garments 0 4 270 164 438

Sub Total: 3 26 1804 3225 505814 Buying House 0 1 11 90 102

15 Textile Educational and Training Institutions

16 34 169 171 390

16 Others 6 4 50 34 94

Sub Total: 22 39 230 295 586

Grand Total: 25 65 2034 3520 5644

Among the employed textile technologists in textile field only 2% have Master and 36% have B.Sc. Degree level education in textile disciplines. Textile diploma holders form the majority (62%).

Fig. 7.1:

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Distribution of Textile Technologists Employed in Textile Industry by category of Degree

Ph.D/ M.Sc/ MBA2%

B.Sc.36%

Dip.62%

Spinning sub-sector appears to be the largest employer of textile technologists by number of people, followed by mechanized processing, knitting, garments and others sub-sectors shown in the graph below.

Fig. 7.2 Distribution of Textile Technologists

0

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7.5 Existing Manpower and Textile Technologists in the Sub-Sectors

7.5.1 Existing Manpower and Textile Technologists in the Spinning Sub-sector

In Spinning Mills, there are, in all, 245,005 employees, out of whom, 1,595 are Textile Technologists. Among other employees, 17,678 are non-technicians and others are general workers. For more details, Table – 7.3 may be consulted.

Table – 7.3: Present Employment Position

Sub-Sectors

Textile Technologists Non-technical Persons

Others (General Workers) Total G. TotalMale Female

Ph.D M.Sc. Graduate Diploma Total Skilled Unskilled

Skilled Unskilled

Spinning2 6 312 1275 1595 17,678 83,542 25,724 78,785 37,681 243,410 245,005

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7.5.2 Existing Manpower and Textile Technologists in the Weaving Sub-sector

In Weaving Mills, there are, in all, 100,623 employees, out of whom, 291 are Textile Technologists. Among other employees, 9,640 are non-technicians and others are general workers. For more details, Table – 7.4 may be consulted.


Sub-Sectors




Skilled Unskilled

Weaving 0 4 61 226 291 9,640 57,575 12,720 17,503 2,894 100,332 100,623

7.5.3 Existing Manpower and Textile Technologists in the Composite Mills Sub-sector

In Composite Mills, there are, in all, 14,127 employees, out of whom, 103 are Textile Technologists. Among other employees, 2,088 are non-technicians and others are general workers. For more details, Table – 7.5 may be consulted.


Sub-Sectors




Skilled Unskilled

Composite 0 3 33 67 103 2,088 5,000 1,716 3,511 1,709 14,024 14,127

7.5.4 Existing Manpower and Textile Technologists in the Specialized Textile Mills and Power Loom Industries Sub-sector

In Power Loom Industries, there are, in all, 49,536 employees, out of whom, 6 are Textile Technologists. Among other employees, 17,048 are non-technicians and others are general workers. For more details, Table – 7.6 may be consulted.


Sub-Sectors



Ph.D M.Sc. Graduate Diploma

Total Skilled Unskilled

Skilled Unskilled

Power Loom

0 1 0 5 6 17,048 18,582 10,303 2,235 1,362 49,530 49,536

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7.5.5 Existing Manpower and Textile Technologists in the Knitting Industries

In Knitting Industries, there are, in all, 520,710 employees, out of whom, 1,054 are Textile Technologists. Among other employees, 33,583 are non-technicians and others are general workers. For more details, Table – 7.7 may be consulted.


Sub-Sectors




Skilled Unskilled

Knitting Industry

0 5 404 645 1054 33,583 218,376 43,373 175,415 48,909 519,656 520,710

7.5.6 Existing Manpower and Textile Technologists in the Terry-Towel & Linen Manufacturing Industries Sub-sectorIn Terry Towel & Linen Manufacturing Industries, there are, in all, 18,504 employees, out of whom, 72 are

Textile Technologists. Among other employees, 1,546 are non-technicians and others are general workers.

For more details, Table – 7.8 may be consulted.


Sub-Sectors




Skilled Unskilled

Terry Towel

0 0 12 60 72 1,546 8,256 1,680 5,428 1,522 18,432 18,504

7.5.7 Existing Manpower and Textile Technologists in the Dyeing, Printing and Finishing Industries Sub-sector (Mechanized)

In Dyeing, Printing & Finishing Industries (Mechanized), there are, in all, 102,997 employees, out of whom, 980 are Textile Technologists. Among other employees, 9442 are non-technicians and others are general workers. For more details, Table – 7.9 may be consulted.


Sub-Sectors




Skilled Unskilled

Dyeing (Mecha)

1 3 484 492 980 9,442 46,887 17,595 21,716 6,377 102,017 102,997

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7.5.8 Existing Manpower and Textile Technologists in the Dyeing, Printing and Finishing Industries Sub-sector (Semi-Mechanized)

In Dyeing, Printing & Finishing Industries (Semi-Mechanized), there are, in all, 38,137 employees, out of whom, 326 are Textile Technologists. Among other employees, 1868 are non-technicians and others are general workers. For more details, Table – 7.10 may be consulted.

Table –7.10: Present Employment PositionSub-Sectors




Skilled Unskilled

Dyeing (Semi-Mecha)

0 0 166 160 326 1,868 18,013 3,518 12,123 2,289 37,811 38,137

7.5.9 Existing Manpower and Textile Technologists in the Synthetic Yarn Manufacturing Industries Sub-sector

In Synthetic Yarn Manufacturing Industries, there are, in all, 7781 employees, out of whom, 18 are Textile Technologists. Among other employees, 1,022 are non-technicians and others are general workers. For more details, Table – 7.11 may be consulted.


Sub-Sectors




Skilled Unskilled

Synthetic Yarn

0 0 6 12 18 1,022 2,513 1,596 1,302 1,330 7,763 7,781

7.5.10 Existing Manpower and Textile Technologists in the Sewing Thread Manufacturing Industries Sub-sector

In Sewing Thread Manufacturing Industries, there are, in all 3,166 employees, out of whom, there are 2 Textile Technologist. Among other employees, 475 are non-technicians and others are general workers. For more details, Table – 7.12 may be consulted.


Sub-Sectors




Skilled Unskilled

Sewing Thread

0 0 1 1 2 475 1,879 124 638 48 3,164 3,166

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7.5.11 Existing Manpower and Textile Technologists in the Sweater Industries Sub-sector

In Sweater Industries, there are, in all, 597,520 employees, out of whom, 161 are Textile Technologists. Among other employees, 37,620 are non-technicians and others are general workers. For more details, Table – 7.13 may be consulted.





Skilled Unskilled

Sweater Industry

0 0 55 106 161 37,620 262,374 61,643 180,953 54,769 597,359 597,520

7.5.12 Existing Manpower and Textile Technologists in the Silk Industries Sub-sector (110 Mills)

In Silk Industries, there are, in all, 3,762 employees, out of whom, 12 are Textile Technologists. Among other employees, 549 are non-technicians and others are general workers. For more details, Table – 7.14 may be consulted.


Sub-Sectors




Skilled Unskilled

Silk Industry

0 0 0 12 12 549 1,263 528 777 633 3,750 3,762

7.5.13 Existing Manpower and Textile Technologists in the Ready Made Garments (RMG) Industries Sub-sector

There are 2,503,785 employees in the Woven & Knit Garments, out of whom, 438 are Textile Technologists. Among other employees, 128,525 are non-technicians in the woven garments industries, including others are general workers. For more details, Table – 7.15 may be consulted.




Ph.D M.Sc. Graduate Diploma Total Skilled Unskilled Skilled Unskilled

Woven Garments

0 2 158 91 251 81536 436969 74796 747488 160992 1501781 1502032

Knit Garments

0 2 112 73 187 46989 320901 61896 482418 89362 1001566 1001753

Total: - 4 270 164 438 128,525 757,870 136,692 1,229,906 250,354 2,503,347 2,503,785

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7.6 Requirement and Availability of Textile Technologists at Different Levels

Methods of determination of Requirement and Availability of Textile Technologists at Different Levels

The Models of Domestic and Export Demand and Supply FunctionsExport demand/supply and local demand/supply in the model is measured in terms of the following equations:

-------------------------------------(1)

-------------------------------(2) (+) (+) (+) (-)

-----------------------------(3)(+) (+) (+) (+)

--------------------(4) (+) (+) (+) (?) (?) (?)

---------------------(5) (+) (+) (+) (?) (?) (?)

Where: TD = Total demandED = Export demandDD = Domestic demandNp = World populationRP = Relative export price compare to international pricesWE = World economy Nd = Population of BangladeshLRP = Local price compare to international pricesBA = Buying ability of BangladeshiES = Export supplyREP = Relative export priceDS = Domestic supplyRP = Retail relative price IC = Installed capacity of existing mi/csLT = Local technologyLI = Local InvestmentFI = Foreign Investment

Elasticity of export demand for textile quality products with respect to supply is very high. The positive elasticity of both export and domestic demand, low cost of salary and wages makes Bangladesh an attractive place for investment. Because of the limitation of our production capacity, domestic demand increases and export supply decreases.

REGRESSION RESULTS

Forecast of next year’s productions:

First we have estimated a primary model using the variables growth-trend of production of textile industries (Table- 4.6). Then, in the similar way, we have calculated the resent growth-trend as well as projection of growth by the equation (6) in linier regression as well as exponential method:

------------------------------------(6) M = Growth of production in a year, calculated by trend analysis and global market analysis [1]

= Production of a particular year

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Statistics of Raw material Import (M. Kg), Source: NBRFY 2004 2005 2006 2007Cotton Fibers 495.10 554.00 651.53 648.25Cotton fabrics 122.79 166.48 169.20 176.56Cotton yarn 72.09 95.16 90.94 142.77Synthetic Fibers 96.48 103.01 93.59 85.81Synthetic Yarn 45.17 55.23 48.30 43.50Silk/Wool 2.13 2.01 2.12 2.00Synthetic Fabrics 16.54 15.30 14.15 18.76PC Fabrics 37.52 38.53 34.20 34.74Total 887.82 1029.72 1104.03 1152.39

RM used in non-RMG (40%) 451.44 461.44 409.99 339.93

RM used in RMG (60%) 436.38 568.28 694.04 812.46

= Production of the previous year

Forecast of next years skilled manpower (Textile Engineers):

---------------------------(7) = Current number of skilled manpower

= Growth of employment of skilled manpower, calculated by moving average and exponential method.

= Number of retirement of skilled manpower in current year= Number of skilled manpower in last year

By using the results of the regression of equations (6) & (7) i.e. current production and manpower, the requirement of skilled manpower are fixed up.

Co-relation of domestic and export demand of textile products and demand-supply gap

Table 7.16 shows the import of raw material (Fibers, Yarns & Fabrics) in textile industries. It is distributed in the RMG and non-RMG sectors. 60% of raw materials are used in RMG sector and the rest for non-RMG. Table 7.16 shows that the 54.5% of raw material is used for export and rest 45.5% for domestic. Table 7.16 and Fig. 7.4 show the total export of RMG as well as yarn and fabrics. From these expressions, it can be showed that the Knit-Garments are increasing exponentially and Woven Garments, yarn, Fabrics, terry towel and home textile are increasing linearly.

Table 7.16: Statistics of Raw material Import (M. Kg) and their use in RMG and Non RMG Sector

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Fig. 7.3: Trend of raw material consumption for export and domestic demand

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Table 7.17: Export Statistics (M. Dollar) for Textile Sub Sectors (Sources EPB)

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Export 2003-04 2004 - 05 2005-06 2006-07 2007 - 08 Knitwear 2148 2819.5 3817 4553.6 5532.52Woven Garments 3538.1 3598.2 4083.8 4657.6 5167.28Sub-Total 5686.1 6417.7 7900.8 9211.2 10699.8

Textile Fabrics 27.15 16.96 36.88 36.08 66.57Home Textile 135.49 156.14 165.25 256.97 291.39Terrytowel 96.3 105.98 112.88Sub-Total 162.64 173.1 298.43 399.03 470.84

Total 5848.7 6590.8 8199.2 9610.3 11170.6

Fig. 7.4: Growth trend of export of different items for Textile Sub Sectors (Sources EPB)

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6000

7000

2003-04 2004 - 05 2005-06 2006-07 2007 - 08

Exp

ort i

n M

. US

DKnitwear

Woven Garments

Home Textile

Terrytowel

Table 7.18: Domestic Production of Yarn and Fabrics

FY Yarn Production (million k.g.)

Growth in % Fabric Production (million metre)

Growth in %

2003-04 380.00 12% 2,750 25%2004-05 450.00 18% 3,400 23%2005-06 537.00 17.5% 4,090 20%2006-07 594.00 10.5% 4,910 20%2007-08 * 710.00 19% 5,800 18%Annual av. growth 15.% 18.8%

Table- 7.19: Fabric Consumed by the RMG (See Section-4 conversion of Kg-Meter-Dozen)

Export of Readymade Garment(Million Dozen)

Fabrics Consumed by RMG (M. Meters)

Woven Knit Woven Knit Total2003-04 90.48 91.60 1,675 1,648 3,3232004-05 92.26 120.13 1,708 2,162 3,8702005-06 108.81 165.02 2,015 2,970 4,9852006-07 133.07 199.54 2,464 3,592 6,0562007-08 147.85 234.52 2,738 4,221 6,959Annual growth 11.67% 24.75% 11.67% 24.75% 18.24%

79

Production Growth Scenario of Textile Sectors

In Table- 7.19 the historical growth of Export-oriented RMG Industry of Bangladesh has been reviewed which shows a significant growth of demand of RMG.

Fig 7.8 shows that the rate of increase in the production of textile sectors is significant. There are remarkable growth of knitting production compared to spinning and weaving production.

This is the reason, why we need to import the knit-yarn. So we need a huge number of Textile Engineers in Spinning Mills to increase our Spinning Production. As we can see that the production capacity utilization of Spinning Mills is very poor (only 40-70%) in the running mills and there are a large number of spinning Mills in an idle condition. As we have a huge amount of idle assets, we can achieve our targeted yarn production for our woven and hosiery fabrics. There must be a remarkable number of Textile Engineers to run those idle Mills profitably.

Requirement of Skilled Manpower in Textile Sectors

Table 7.20 shows the required, existing and shortfall of technologists in textile sector in Bangladesh. The requirement of skilled manpower has been assessed by studying the technical manpower engaged in textile sectors in advanced countries and well established textile industries in Bangladesh.

The requirement of technologists has been assessed on the basis of machine to man ratio and load analysis carried out in selected case studies.

Table 7.20: Assessment of Requirement of Skilled Manpower in Textile Sector Sub sector Required Existing Existing Shortfall

Ph.D M.Sc/ MBA

B.Sc. Dip. Total Ph.D M.Sc/ MBA

B.Sc. Dip. Total Ph.D M.Sc/ MBA

B.Sc. Dip. Total

Spinning Industry 92 484 2610 4959 8145 2 6

312 1275 1595 90 478 2298 3684 6550

Dyeing (All Unit) 65 163 1824 2508 4560 1 3

650 652 1306 64 160 1174 1856 3254

Weaving Mills 35 16 255 510 816 0 4

61 226 291 35 12 194 284 525

Composite Mills 5 12 75 135 227 0 3

33 67 103 5 9 42 68 124

Specialized Textile & Power Loom

1 1 5 10 17 0 1

0 5 6 1 0 5 5 11

Knitting Industry 55 87 426 843 1411 0 5 404 645 1054 55 82 22 198 357

Sweater Industry 3 21 72 288 384 0 -

55 106 161 3 21 17 182 223

Synthetic Yarn Manufacturing

3 9 60 114 186 0 -

6 12 18 3 9 54 102 168

Terry Towel Linen Manufacturing Industry

1 1 20 80 102 0 -

12 60 72 1 1 8 20 30

Silk Industry 1 2 30 100 133 0 -

0 12 12 1 2 30 88 121

Buying House 0 150 300 600 1050 0 1

11 90 102 0 149 289 510 948

Sewing Thread Manufacturing Industry

1 4 20 39 64 0 -

1 1 2 1 4 19 38 62

Ready Made Garments 86 814 1879 7000 9779 0 4 270 164 438 86 810 1609 6836 9341

Textile Educational and Training Institutions

65 119 250 180 614 16 34 169 171 390 49 85 81 9 224

Others 10 10 165 50 235 6 4 50 34 94 4 6 115 16 141

Total: 423 1893 7991 17416 27723 25 65 2034 3520 5644 398 1828 5957 13896 22079

Requirement, Existing & Shortfall of Textile Technologists shown in Table 7.20 have been exhibited with the help of the following bar charts 7.5, 7.6 & 7.7.

80

8518451150

576228 142

900

447250255300

2,610

1,824

426

1,879

816

180510600

4,959

2,508

843

7,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Spinning Dyeing (All) Knitting Ready MadeGarments

Buying House Weaving TextileEducation

Others

Ph.D/ M.Sc/ MBAB.Sc.Dip.

Requ

ired

Text

ile T

echn

olog

ists

0

200

400

600

800

1000

1200

1400

Spinnin

g In

dustr

y

Dyeing

(All U

nit)

Knittin

g In

dustr

yRM

G

Textile

Edu

catio

n

Wea

ving

Mills

Compo

site

Mills

Buying

Hou

se

Other

s

Exi

stin

g T

extil

e te

chno

logi

sts

Ph.D./ M.Sc./ MBAB.Sc.Diploma

Fig.7.5: Present demand of Textile Technologists:

The textile technologists have been grouped into PhD, MSc, MBA, BSc Engineers and Diploma Engineers. The requirement of post graduates is 2,316, existing is 90 and shortfall is 2,226. Requirement of graduate engineers is 7,991, existing is 2,034 and shortfall is 5,957. Requirement of Diploma engineers is 17,416, existing is 3,520 and shortfall is 13,896. The total requirement of technologists is 27,723, existing number is 5,644 and total shortfall stands at 22,079.

Fig.-7.6: Existing Textile technologists in textile sectors

81

0

10

20

30

40

50

60

70

80

90

100

2003-04 2004-05 2005-06 2006-07

Incr

easi

ng o

f P

rodu

ctio

n fr

om Y

r.20

04 (

%)

YarnWoven fabricKnitted fabric

137 149 76194 22289 293

6836

510 471128

896567224

4779

16091174

2298

998

1756

3084

184

0

1000

2000

3000

4000

5000

6000

7000

8000

Spinnin

g

Dyeing

(All)

Wea

ving

Knittin

g

Ready

Mad

e Gar

men

ts

Buying

Hou

se

Textile

Edu

catio

n

Other

Org

aniza

tions

Sho

rtfa

ll of

Tec

hnol

ogis

ts

Ph.D/ M.Sc/ MBAB.Sc.Diploma

Fig. 7.7: Shortfall of Textile technologists in textile sectors

Fig 7.8 depicts the growth of the production of yarn, woven fabrics and Knitted fabrics through the years 2003-04 to 2006-07. Based on actual growth in these four years, the projection of production and technologists have been shown in Figure 7.9. Figure 7.9 shows sector-wise projected requirement of technologists – postgraduates, graduates and diploma engineers in 2015.

Fig. 7.8: Growth of Textile Sectors (Production)

82

2,316 2,663.40 3,062.91 3,522.35 4,050.70 4,658.30 5,357.057,991

9,19010,568

12,15313,976

16,07318,48417,416

20,028

23,033

26,488

30,461

35,030

40,284

21249.3

27383.8

33261.9

0

10000

20000

30000

40000

50000

60000

70000

80000

2004-05 2005-06 2006-07 2007-08

Req

uir

ed T

exti

le T

ech

no

log

ists

RMG Growth '000' Doz

Ph.D/M.Sc/MBA

B.Sc.

Dip.

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Fig 7.9: Projection of Textile Technologists from 2007-08 to 2014-15 (year wise)

Figure 7.9 shows year-wise total requirement of technologists from 2007-08 to 2014-15. Our study reveals that about 40% textile mills are running well; management of the rest of the textile units are running with poor capacity utilization mainly due to shortage of skilled manpower.

Recommendation for availability of the Technologists

At present, we have a huge shortage of Textile Engineers of all categories; we have no scope of higher education (M.Sc. and PhD). A large number of brilliant and skilled manpower are trying to go abroad, but the developed countries have no interest about textile research, as they are doing other high tech business. So it is suggested to establish at least two Textile Universities immediately for higher education. Table 7.21 a & b & Fig. 7.10 show requirement of Textile Engineers of all categories. Required B.Sc. Engineers will be in break-even position in yr. 2015. But, at present, there is huge shortage of B.Sc. Engineers (5,957). Table 7.21a: Projected demand of Textile Technologists from 2007-08 to 2014-15 (year wise)

Categories PhD M.Sc. MBA B.Sc. Dip. Total

2007-08 423 1499 394 7991 17416 27,723 2008-09 495 1699 446 9110 20101 31,851 2009-10 564 1937 508 10385 24228 37,623 2010-11 643 2208 580 11839 28355 43,625 2011-12 733 2517 661 13496 32482 49,890 2012-13 836 2870 753 15386 36609 56,454 2013-14 953 3271 859 17540 40736 63,359 2014-15 1087 3729 979 19996 44863 70,654

Table 7.21b: Demand Supply Gap of Textile Technologists

Level Existing Required in 2014-15 GapPh.D 25 1,087 1062Masters 65 4,708 4643B.Sc.Eng 2,034 19,996 17962Diploma 3,520 44,863 41343Total: 5644 70654 65010

83

Table 7.21a&b Show a huge demand of Textile Technologists

The Institutions mentioned in the following Table about B.Sc. in textile and Diploma in textile. Institution-wise passed out numbers during 2005, 2006 and 2007 may be seen from the following Table.

Table -7.22: Statement of Last 3 years Passed out Textile Technologists

Name of the Institution Passed out Student during the last 3 year

2005 2006 2007B.Sc Dip. B.Sc. Dip. B.Sc. Dip.

1. Ahsanullah University of Science and Technology

24 57 65 60 88 58

2. Institute of Textile Engineering & Clothing Technology

0 0 0 0 0 0

3. Gazipur Textile Engineering & Technology 0 0 0 0 0 13

4. Institute of Textile Engineering & Technology

0 0 0 0 0 14

5. Dhaka University of Engineering & Technology

0 0 0 0 0 0

6. Mawlana Bhashani University of Science & Tech. 0 0 0 0 0 07. Institute of Textile Engineering and

Information Tech0 0 0 0 0 0

8. Ideal Institute of Science & Technology (IIST) 0 0 0 0 0 409. Model Institute of Science & Technology 0 0 0 0 0 0

10. Uttara Textile Engineering College 0 0 0 0 0 011. Institute of Information Technology Bogra 0 0 0 0 0 7

12. Haji Abul Hossain Institute of Technology 0 0 0 0 0 9

13. Islami Bank Institute of Technology Chittagong

0 0 0 0 0 0

14. Pabna Textile Engineering Institute 0 0 0 0 0 015. Sirajgonj Institute of Textile Engineering &

Technology0 0 0 0 0 0

16. Bangladesh Institute of Textile Technology, Tangail

0 0 0 0 0 0

17. College of Textile Technology 210 0 214 0 215 018. Textile Institute Tangail 0 51 0 66 0 7919. Pabna Textile Engineering College, Pabna 0 57 0 56 0 7620. Textile Engineering College, Begumgonj,

Noakhali0 33 0 35 0 36

21. Textile Engineering College Chittagong 0 29 0 48 0 4322. Textile Institute Dinajpur 0 34 0 57 0 5623. Textile Institute Barisal 0 21 0 34 0 7024. Green University of Bangladesh 0 0 0 0 0 025. Prime Asia University 0 0 0 0 30 026. Daffodil International University 0 0 0 0 0 027. National Polytechnic College 0 0 0 0 0 028. City University 0 0 0 0 0 029. University of South Asia 0 0 0 0 0 030. Southeast University 0 0 0 0 0 0

Total 234 282 279 356 333 501

Existing Teaching Faculties in Textile Institutions

In these Institutions, there are, in all, 50 Ph.D. & MS holders, 169 B. Sc. Degree holders and 171 Diploma holders. Institution-wise position may be seen from the following Table 7.23a&b.

84

Table 7.23: Existing Teaching Faculties (See in Excel Sheet 3 pages)85,86,87

85

Table – 7.24: Number of Textile Technologists in Other Organizations

In Excel Sheet (1 Page ) 88

88

Approved No. of Admission Seekers and Annual Turn Over Rate in the Vocational Institutions

The Institutions mentioned in the following Table provide Vocational Education/certificate to the textile technologists. Their approved annual capacities are 4,067 and annual turn over number is 2,749. Institution-wise capacities and turn over may be seen from the following Table.Table – 7.25: S.S.C./Vocational Institutes and their Activities/Outcome

Name of the Institution Approved No. of Admission Seekers

Annual Turnover number Rate

B.Sc. Dip Voc. Other B.Sc. Dip Voc Other

1 Textile Vocatyional Institute, Narayangonj 0 0 180 0 0 0 150 02 Textile Vocational Institute, Rangamati 0 0 90 0 0 0 70 03 Textile Vocational Institute, Comilla 0 0 90 0 0 0 72 04 Textile Vocational Institute, Luxmipur 0 0 100 0 0 0 56 05 Textile Vocational Institute, Chittagong 0 0 90 0 0 0 90 06 Textile Vocational Institute, B-Baria 0 0 90 0 0 0 54 07 Textile Vocational Institute, Gazipur 0 0 90 0 0 0 80 08 Textile Vocational Institute, Mymensingh 0 0 90 0 0 0 72 09 Textile Vocational Institute, Madaripur 0 0 90 0 0 0 0 0

10 Textile Vocatyional Institute, Munshigonj 0 0 90 0 0 0 68 011 Textile Vocatyional Institute, Narsingdi 0 0 120 0 0 0 65 012 Textile Vocational Institute, Jamalpur 0 0 90 0 0 0 86 013 Textile Vocational Institute, Pirojpur 0 0 66 0 0 0 55 014 Textile Vocational Institute, Patuakhali 0 0 90 0 0 0 80 015 Textile Vocational Institute, Bagerhat 0 0 90 0 0 0 65 016 Textile Vocational Institute, Khulna 0 0 90 0 0 0 41 017 Textile Vocational Institute, Jhalakati 0 0 90 0 0 0 0 018 Textile Vocational Institute, Jessore 0 0 90 0 0 0 70 019 Textile Vocatyional Institute, Kushtia 0 0 90 0 0 0 70 020 Textile Vocational Institute, Barguna 0 0 90 0 0 0 90 021 Textile Vocational Institute, Natore 0 0 90 0 0 0 72 022 Textile Vocational Institute, Rajshahi 0 0 180 0 0 0 107 023 Textile Vocational Institute, Pabna 0 0 90 0 0 0 50 024 Textile Vocational Institute, Bogra 0 0 90 0 0 0 58 025 Textile Vocational Institute, Rangpur 0 0 66 0 0 0 30 026 Textile Vocational Institute, Dinajpur 0 0 90 0 0 0 66 027 Textile Vocational Institute, Thakurgaon 0 0 180 0 0 0 110 028 Textile Vocational Institute, Gopalgonj 0 0 180 0 0 0 90 029 Textile Vocational Institute, Bandarban 0 0 100 0 0 0 60 030 Textile Vocational Institute, Khagrachari 0 0 90 0 0 0 75 031 Textile Vocatyional Institute, Keraniganj 0 0 120 0 0 0 0 032 Textile Vocational Institute, Tangail 0 0 90 0 0 0 200 033 Textile Vocational Institute, Kishorgonj 0 0 60 0 0 0 0 034 Textile Vocational Institute, Noakhali 0 0 180 0 0 0 72 035 Textile Vocational Institute, Faridpur 0 0 120 0 0 0 111 036 Textile Vocational Institute, Cox's Bazar 0 0 60 0 0 0 60 037 Textile Vocational Institute, Sirajgonj 0 0 180 0 0 0 157 038 Textile Vocational Institute, Gaibandha 0 0 75 0 0 0 30 039 Textile Vocational Institute, Naogaon 0 0 60 0 0 0 37 040 TVI Institute, Chapai Nawabganj 0 0 60 0 0 0 30 0

Total 0 0 4067 0 0 0 2749 0

89

Passed out Student during Last 3 Years in the Vocational Institutions

The Institutions mentioned in the following/above Table provide Vocational Education/SSC Certificate to the textile technologists. The number of passed out students were 806 (year 2005), 1,140 (year 2006) and 1,162 (year 2007). Institution-wise passed out numbers may be seen from the following Table.

Table – 7.26: S.S.C./Vocational Institutes and their Activities/Outcome (Contd.)

Name of the Institution Passed out Student during the last 3 year2005 2006 2007

B.Sc Dip. Voc. B.Sc. Dip. Voc. B.Sc. Dip. Voc.

1 Textile Vocational Institute, Narayangonj 0 0 40 0 0 46 0 0 58

2 Textile Vocational Institute, Rangamati 0 0 27 0 0 35 0 0 31

3 Textile Vocational Institute, Comilla 0 0 27 0 0 50 0 0 51

4 Textile Vocational Institute, Luxmipur 0 0 57 0 0 48 0 0 64

5 Textile Vocational Institute, Chittagong 0 0 0 0 0 0 0 0 0

6 Textile Vocational Institute, B-Baria 0 0 28 0 0 40 0 0 44

7 Textile Vocational Institute, Gazipur 0 0 42 0 0 50 0 0 43

8 Textile Vocational Institute, Mymensingh 0 0 24 0 0 30 0 0 52

9 Textile Vocational Institute, Madaripur 0 0 18 0 0 48 0 0 45

10 Textile Vocatyional Institute, Munshigonj 0 0 12 0 0 39 0 0 47

11 Textile Vocatyional Institute, Narsingdi 0 0 11 0 0 31 0 0 29

12 Textile Vocational Institute, Jamalpur 0 0 41 0 0 24 0 0 42

13 Textile Vocational Institute, Pirojpur 0 0 11 0 0 30 0 0 19

14 Textile Vocational Institute, Patuakhali 0 0 51 0 0 56 0 0 75

15 Textile Vocational Institute, Bagerhat 0 0 27 0 0 21 0 0 20

16 Textile Vocational Institute, Khulna 0 0 33 0 0 16 0 0 18

17 Textile Vocational Institute, Jhalakati 0 0 25 0 0 33 0 0 23

18 Textile Vocational Institute, Jessore 0 0 17 0 0 38 0 0 44

19 Textile Vocatyional Institute, Kushtia 0 0 31 0 0 56 0 0 38

20 Textile Vocational Institute, Barguna 0 0 23 0 0 42 0 0 39

21 Textile Vocational Institute, Natore 0 0 33 0 0 40 0 0 23

22 Textile Vocational Institute, Rajshahi 0 0 31 0 0 55 0 0 62

23 Textile Vocational Institute, Pabna 0 0 43 0 0 43 0 0 40

24 Textile Vocational Institute, Bogra 0 0 15 0 0 32 0 0 39

25 Textile Vocational Institute, Rangpur 0 0 32 0 0 28 0 0 23

26 Textile Vocational Institute, Dinajpur 0 0 36 0 0 65 0 0 51

27 Textile Vocational Institute, Thakurgaon 0 0 32 0 0 31 0 0 30

28 Textile Vocational Institute, Gopalgonj 0 0 11 0 0 33 0 0 28

29 Textile Vocational Institute, Bandarban 0 0 12 0 0 30 0 0 25

30 Textile Vocational Institute, Khagrachari 0 0 16 0 0 50 0 0 29

31 Textile Vocatyional Institute, Keraniganj 0 0 0 0 0 0 0 0 0

32 Textile Vocational Institute, Tangail 0 0 0 0 0 0 0 0 0

33 Textile Vocational Institute, Kishorgonj 0 0 0 0 0 0 0 0 0

34 Textile Vocational Institute, Noakhali 0 0 0 0 0 0 0 0 11

35 Textile Vocational Institute, Faridpur 0 0 0 0 0 0 0 0 19

36 Textile Vocational Institute, Cox's Bazar 0 0 0 0 0 0 0 0 0

37 Textile Vocational Institute, Sirajgonj 0 0 0 0 0 0 0 0 0

38 Textile Vocational Institute, Gaibandha 0 0 0 0 0 0 0 0 0

39 Textile Vocational Institute, Naogaon 0 0 0 0 0 0 0 0 0

40 TVI Institute, Chapai Nawabganj 0 0 0 0 0 0 0 0 0

Total 0 0 806 0 0 1140 0 0 1162

Existing Teaching Faculties in Vocational Institutions

90

In these 40 Institutions, there are, in all, 02 M.Sc., 38 B.Sc. Degree holders and 63 Diploma holders. Institution-wise position may be seen from the following Table.

Table – 7.27: Textile Technologists in S.S.C./Vocational Institutes

Name of the InstitutionExisting Manpower with Textile Education

Ph. D. M.Sc. B.Sc. Dip

1 Textile Vocatyional Institute, Narayangonj 0 0 4 32 Textile Vocatyional Institute, Rangamati 0 0 1 13 Textile Vocational Institute, Comilla 0 1 0 14 Textile Vocational Institute, Luxmipur 0 0 0 05 Textile Vocational Institute, Chittagong 0 0 1 26 Textile Vocational Institute, B-Baria 0 0 1 57 Textile Vocational Institute, Gazipur 0 0 2 28 Textile Vocational Institute, Mymensingh 0 0 1 19 Textile Vocational Institute, Madaripur 0 0 1 210 Textile Vocatyional Institute, Munshigonj 0 0 0 211 Textile Vocatyional Institute, Narsingdi 0 0 1 212 Textile Vocational Institute, Jamalpur 0 0 1 213 Textile Vocational Institute, Pirojpur 0 0 0 014 Textile Vocational Institute, Patuakhali 0 0 1 215 Textile Vocational Institute, Bagerhat 0 0 0 116 Textile Vocational Institute, Khulna 0 0 1 217 Textile Vocational Institute, Jhalakati 0 0 1 118 Textile Vocational Institute, Jessore 0 0 2 119 Textile Vocatyional Institute, Kushtia 0 0 1 220 Textile Vocational Institute, Barguna 0 0 1 021 Textile Vocational Institute, Natore 0 0 0 222 Textile Vocational Institute, Rajshahi 0 0 1 123 Textile Vocational Institute, Pabna 0 0 0 224 Textile Vocational Institute, Bogra 0 0 1 225 Textile Vocational Institute, Rangpur 0 1 1 326 Textile Vocational Institute, Dinajpur 0 0 1 227 Textile Vocational Institute, Thakurgaon 0 0 1 128 Textile Vocational Institute, Gopalgonj 0 0 1 129 Textile Vocational Institute, Bandarban 0 0 1 130 Textile Vocational Institute, Khagrachari 0 0 1 031 Textile Vocatyional Institute, Keraniganj 0 0 1 132 Textile Vocational Institute, Tangail 0 0 1 133 Textile Vocational Institute, Kishorgonj 0 0 1 434 Textile Vocational Institute, Noakhali 0 0 1 135 Textile Vocational Institute, Faridpur 0 0 1 136 Textile Vocational Institute, Cox's Bazar 0 0 1 137 Textile Vocational Institute, Sirajgonj 0 0 1 238 Textile Vocational Institute, Gaibandha 0 0 1 239 Textile Vocational Institute, Naogaon 0 0 0 140 Textile Vocational Institute, Chapai Nawabganj 0 0 2 2

Total 0 2 38 63

91

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Dem

and

/Sup

ply

of T

extil

e E

ngin

eers

Demand of B.Sc.Demand of DiplomaSupply of B.Sc.Supply of Diploma

Trend of supply of Textile Technologists from Universities/Institutes:

Fig.7.10 shows the projection of supply of textile technologists, it also shows the increasing tendency of supply of textile technologists is too high from 2013(exponential). Fig. 7.10: Demand-Supply of Textile Technologists

Undertaken (a) short, (b) medium and (c) long term plan for supply of Textile Technologists to meet the demand gap(a) Short TermTo meet the current demand of textile technologists short term plan (Table 7.28) should be taken

Categories

Current Demand

Source of Supply

Ph.D 423 Govt. should arrange scholarship for PhD and BUET/DUET can start PhD course in textile engineering immediately. Textile University (College of Textile Engineering & Technology already proposed) should be started immediately and necessary research instrument and logistic support should be given from govt. and private Universities who have necessary facilities should also start the Ph.D courses.

M.Sc 1499 same as aboveMBA 494 Like BIFT (BGMEA Institute of Fashion and Technology), Private Universities should start MBA course

in Textile B.Sc. 7991 We assume that we have sufficient universities to supply B.Sc, Engineers. But quality should be

maintained by faculties, laboratories, instruments, machines etc. Diploma 17416 To meet the demand gap for Diploma Textile Engineers, Annual intake of each Textile Institutes should

be 100. Govt. can allow more Private Diploma Colleges.

b) For the supply of textile technologists a medium term plan (Table 7.29) should be taken

Categories Source of SupplyPh.D Govt. should increase new capacity building of educational infrastructure with the aim of preparation of

Ph.D level textile technologists. Specially, the present College of Textile Engineering and Technology is to be modernized and designed as a world level University.

M.Sc same as aboveMBA same as aboveB.Sc. Govt. should strictly control the private universities for maintaining quality of technologists by controlling

educational infrastructure (faculties, laboratories, instruments, machines etc.) Diploma Govt. should build up educational infrastructure with the aim of preparation of diploma level textile technologists

and annual intake of each existing Textile Institutes should be 200.

92

c) For the supply of textile technologists a long term plan (Table

7.30) should be taken

Categories Source of SupplyPh.D Besides the capacity building of educational infrastructure a scientific committee should be formed who will

determine the national educational and research demandM.Sc same as aboveMBA same as aboveB.Sc. With respect to the control the private universities for maintained quality of technologists by controlling

educational infrastructure (faculties, laboratories, instruments, machines etc.) Diploma Govt. should build up educational infrastructure with the aim of preparation of diploma level textile technologists

and annual intake of each existing Textile Institutes should be 200.

Conclusion and suggestion for increasing the capacity of textile institutes

After analyzing the country’s industrial infrastructure, human resources, local and foreign direct investment, and government policy, we have established the follows:

(i) In view of the gradual increase in the demand of present context, more textile engineers are to be deployed in this sector. The production of textile industries should be increased by increasing our own technologists.

(ii) It is also concluded that the increased supply of technologists would reduce current dependence of import for yarn & fabrics to half.

(iii) Currently, the textile sector is fully dependent on imported machinery and chemicals. Increased number of highly qualified technologists would also help to develop local manufacturing machinery and textile chemical industries.

(iv) Textile Institutions lack well equipped laboratories and faculties. Hardly any research and development works are being carried out in Bangladesh. Institutions are having obsolete machines. Instructors are not well conversant with the latest machinery.

(v) Private Universities have already started increasing number of student intake envisaging rise of demand without making justice to the required quality in degree level education.

In view of the above conclusion, the following can be put forward:

(i) The govt. should undertake short, medium and long term plan to develop infrastructure to increase the supply of textile technologist to meet the gap identified in this study.

(ii) Capacity building of educational infrastructure should aim at the preparation of Diploma level, Graduate level, Post Graduate and Ph.D level textile technologists.

(iii) To meet the demand gap for Diploma Textile Engineers, Annual intake of each Textile Institutes should be 100.

(iv) Textile institutions should be equipped with types of modern machinery being used in the industries. (v) Textile teachers should update their knowledge on advanced machinery.(vi) Universities should not be allowed to increase student entry without developing faculties and

laboratories.

93

Apart from enhancing institutional educational courses in various textile disciplines, need-based training chains increasing attention. The need-based training could be categorized into: Vocational Training; Modular Training; Sand-witch Diploma; Foundation Training.

The vocational training will mostly concentrate on technical issues covering operational issues, maintenance issues and issues of floor management. These training will be, by and large shop floor based (i.e. of on-site) and be associated with machines and equipment.

The modular training courses will be designed mostly for junior to mid-level executives, and will cover operational, design planning, QC, productivity, management and other relevant issues. The courses will be designed on the basis of the industrial needs. This type of tanning will be of TOT nature, so that the trainees can disseminate the knowledge and expertise acquired by them to their places of work.

Sand-witch Diploma program will target mostly the factory people having first hand experience in dealing with machines, material and human resources, but are lacking systematic knowledge and skill. This will be the type of training that will train up those people to be educated and trained up to certain level so that they can discharge both technical and management responsibilities.

Foundation courses will be designed for newly recruited employees. This will provide exposure on industrial odes of working and focuses on how to adapt self in the industrial environment and effectively keep contribution.

EU_UNIDO sponsored study, conducted by PPMA, show that being inspired by the spectacular growth of RMG along with its backward linkage PT industries, high ambition has grown in many of them to enter into greater scope for expansion of business in the global market. But in contrast to this aspiration, the reality is that the industrial units by and large are highly deficient in terms of skilled or trained manpower in essential areas of production functionalities. The study revealed that majority of the surveyed units (in excess of 60% in many cases), including those of spinning & RMG, were found weak or not adequately skilled even in such generic issues as inventory, material management, production calculation & settings of operational factors & parameters, process control, preventive maintenance& overhauling, shop floor observation, testing & quality control, quality assurance, productivity issues including industrial house keeping, packing & warehousing; not to speak of computer aided modern product planning and designing, compliances, reporting systems, product branding, or supply chain, etc.

94

Training Needs Assessment of the Manpower in the Textile

Sector

Overwhelming majority of all the sub-scrotal industrial units is also characterized by the weakness in a range of non-generic issues related to production. Even though many of the respondents were non conversant to those issues, a considerable number of respondents could identify some areas and issues that include the followings: manufacturing of fashion products, machatronics in the industry, computer skill for production & management facilitation, principle and practices of energy conservation in industry, installation and dismantling of plant-machinery, environmental issues, labour safeguard provisions, fire fighting & disaster management in the industry, prevention of occupational diseases and air pollution, evaluation & monitoring modern HRM, project designing & project implementation, developing strategic action plan, motivation, handling problems related to gender issues, enhancement of supply chain, dealing with bargaining agencies, effective approach for mitigation of workers justified claims, etc.

Also our study agrees that spacious mismatches, therefore, exist between the aim and ability of the industries in both Bangladesh PTS & RMG sector, which in most effective way could be narrowed down by imparting training in identified areas of weakness (as discussed above).

The study has correctly pointed out that “the country’s textile & RMG educational institutions impart customized long courses that encompass multiple disciplines to cover boarder gamut of generalized knowledge. But the practical problems happen to be of specific natures by arising in different ways depending on modalities of industrial functions. These problems, apart from knowledge of education, need specialized skill tips and experience to be encountered. Above all, the difference between the levels of weaknesses/inadequacy and performances needs to be identified first to ascertain the level of intervention by training. As a matter of fact, the responses obtained from the field survey were the indirect measures of their weakness or learning/skill gaps in the concerned areas of the industry and those have provided the team of consultants the basis to develop training products for addressing to these very weakness. These types of training are contributively to strengthening or improving their exposure and skill in the respective areas of interest.” Our team of consultants fully agree that for each category of industries in different sub-sectors, the training plans should cover the following broad areas: Operation & Production Management Maintenance & Electro-Mechanical Issues Testing & Quality Control Marketing Issues Crosscut Issues

We also think it is worthy to conduct training by NITTRAD on the training product PPMA has recommended.

In order to have the portrait major sub-sectors of the textile industry, 05 case studies have been made,

which include details of the case industries, right from their inception to profit and loss status, and the like.

These case studies have been placed below.

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9.1 Case Study of a Spinning Mill:

9.1.1 Introduction

The Matin Spinning Mills Ltd. is situated at Sardagonj, Kashimpur, Gazipur. On technical point of view (machines, raw materials, production planning, sequence and operation, maintenance, utility service, store and inventory control, cost analysis), it is a modern Spinning Mill. However, DBL group has a strong base of financial aspect and marketing activities, this Mill is still running with profit.

9.1.2 Brief description of Matin Spinning Mills Ltd:

1. Name of the Mill / Industry : Matin Spinning Mills Ltd.2. Address Head office : DBL Group of Companies

BGMEA Complex (12th floor), 23/1, Panthopath Link RoadKawranbazar, Dhaka-1215Phone: 8140207-12Email: [email protected]

3. Factory : Sardagonj, Kashimpur, Gazipur4. Contact Person : M.A. Rahim (Feroz)5. Nature of Ownership : Private Limited Co. 6. Year of Establishment : 19917. Total Investment : USD 24 Million 8. Land Area : 15 acre 9. Physical Structure : 150000 SFT (factory raw cotton & finished godown). 10. Type and Nature of the Mill : Spinning 11. Capacity of Machine/Equipment: Spindle: 39,60012. Main product (yarn) : 20/1, 24/1, 26/1, 28/1, 30/1, 32/1, 34/1 (Carded & combed)13. Annual Production capacity : 9.00 m. kgs14. Yarn Production : 8.74 m. kgs15. Raw material requirement : Raw Cotton: 30 ton per day

There was no shortage of raw material and product to be delivered in the mill during the Quarter ended in December 2007.

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9.1.3 Machine and its Capacity and Capacity Utilization:

This mill has very good quality spinning machinery with different types of safety devices. For this safety

system raw material remains free from metal and foreign fibre and it has a good impact on quality of

production. At the back process it has Chute feed system equipment. So, the feeding system of carding

machine is automatic. This mill has fully controled A/C plant. So, they can control humidity of the spinning

section as a result it has a good impact on production and quality of product.

Table-1: List of Machinery with model and country of origin

Sl.No. Name of the Machine Origin and Model No. of machine

Installed Capacity Ton/day

Target Production

Ton/day

Capacity Utilization Ton/day

1 BRM (Uni Flock, Uni Clean, Uni Mix, Uni Flex)

Rieter (Switzerland)

finally 4 line machinery

40Ton/day 32Ton/day 95-100%

2 Carding m/c Rieter C60 (Switzerland)

18 36Ton/day 29ton 95-100%

3 Draw Frame (Breaker)

SB-D15 Rieter (Switzerland)

8 32ton/day 29 ton 95-100%

4 Draw Frame (Finisher draw frame)

RSB-D35 Rieter (Switzerland)

9 32ton/day 29 ton 95-100%

5 Lap Former E 32 Rieter (Switzerland)

3 20 ton/day 15 ton/day according to order

6 Comber/ 8 head E-65 Rieter (Switzerland)

14 22 ton/day 15 ton/day according to order

7 Simplex FL 100 Toyota Japan

9 32ton/day 27 ton 95-100%

8 Ring Frame RX 240 Toyota Japan

33 27 ton/day 26 ton 95-100%

9 Winding machine (Process Coner/ 60 dram)

21C Muratec, Japan

13 27 ton/day 25 85-92%

From the above table It is clear that all the machinery are most modern with latest Technology and for running and maintaining of these machinery, qualified engineers are always needed. Without them no one can control process and product. From the history of last year of the organization, it is running as a standard industry and the mill utilizes 90% of its installed capacity.

9.1.4 Last Three Years Production (in Ton)

Table-2: production in three years in tons

Sl. No. Product 2005-06 2006-07 2007 (July07-Dec 07)1 Yarn card 2100 2240 11002 Yarn combed 6650 6500 3300

Total: 8750 8740 4400

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9.1.5 Quality and Process Control

This mill is able to check-up the properties of raw material (cotton) and properly maintain the bale management system for controlling the quality of the final product. They maintained the off-line and on-line quality control. The quality control equipment are covering the all area of spinning mill. The mill has recruit qualified engineers for maintaining high standard quality product.

Table 3: List of quality control equipments.

Sl. No.

Name of Equipment Manufacturer Model No.

1 AFIS Switzerland AFISPRO2 HVI Switzerland HVI Spectrum3 Raw Cotton impurity analyzer China YGO414 USTER Tester 5 Switzerland5 Electric skein strength tester China YGO28T6 Electro yarn reel England7 Electronic twist tester Germany8 Yarn tension meter England DTMB-5009 Aduent laser tachometer England A2103/LSR/00310 Electronic wt balance England KERN TB11 Moister meter England12 Sliver roving reel England

The product quality of this mill has approximately 25% level of Uster Statistics.

9.1.6 Manpower as on 31st December 2007

Table-4: Manpower at different level.

Level of Skill ness Education Requirement Existing ShortfallManagerial Level B.Sc/ M.Sc./ MBA 1 0 1

High Skill/Expertise Level B.Sc in Textile Engineering 10 8 2Moderate Skill Level Diploma in Textile Engineering 20 15 5Specialized Skill Level Trade Course 15 5 10Skilled Labour Skilled by Experience 300 200 100Semi-Skilled Labour Skill ness developing by work 250 375 +125Unskilled Labour Trainee/Learner 250 350 +100

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9.1.7 Assessment of manpower of 25000 Spindles & 1200 Rotors Capacity (in Ideal case)

Organogram of Required Textile Technologists in Spinning Mills Assessment has done on the basis of 25000 Spindles & 1200 Rotors Capacity

B.Sc/M.Sc/ MBA = 2, B.Sc = 10 and Diploma = 19

N.B: There must be added 15% manpower along with this assessment for the reliever duty

GM/DGM Planning, R & D, Central MIS (Ph.D/M.Sc):1

Manager MIS(B.Sc.): 1

Director Operation (Ph.D/M.Sc./MBA): 1

Manager Prod. (B.Sc.): 1

DGM Commercial H/O (B.Sc.): 1

GM/DGM Plant (B.Sc.):1

Purchasing (Dip.):3

Sales (Dip.):1

Marketing (B.Sc./Dip):3

Manager Maint. (B.Sc.): 1

Manager Utility (B.Sc.): 1

Shift in Charge B.Sc:1.

Shift in Charge B.Sc:1 Shift in Charge B.Sc:1

Manager Q.C. (B.Sc.):1

Sr. P.O/P.O. (B.Sc./Dip): 4.

AP.O. (Dip.): 4.

PO/AP.O.(Dip.): 6Back process: 1Ring & Rotor: 3Finishing: 1

PO/AP.O.(Dip.): 5Back process: 1Ring & Rotor: 3Finishing: 1

PO/AP.O.(Dip.): 5Back process: 1Ring & Rotor: 3

Finishing: 1

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9.1.8 Conclusion

It is a good grade mill. It has very good quality Machinery and also a good number of Textile Engineer. As a result it is possible to produce quality product at the range of ISO standard. The productivity of the mill is also very satisfactory.

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9.2 Case Study of a Weaving Mill:

9.2.1 Introduction: The case study of SIM Fabrics Ltd. is situated at Bhulta, Rupgonj, Narayanganj. This mill is an average graded one in respect of technical points of view, such as, machinery, raw material used, quality of the product, production planning and control, maintenance, utility service, store and inventory control. A strong base of financial aspect and marketing activities exist there. The mill is an 100% export oriented one and running up to now with profit.

9.2.2 A brief description of SIM Fabrics Ltd.:

1. Name of the Mill : SIM Fabrics Ltd.2. Nature of the Ownership : Private Limited Company3. Address of the Head Office : Ridge Dale (3rd floor), Cha-75/2

Progoti Sharoni, Badda, Dhaka-12123. Year of Establishment : 4. Authorized Capital : Tk: 30,000,000.005. Paid-up Capital : Tk: 1,750,0006. Land Area : 7. Physical Structure : 8. Type or Nature of Mill : Weaving Mill9. Contact Person : Mr. Md. Mozaffar Hossain10. Installed Capacity : 125 set11. Main product : Gray Fabrics12. Annual Production Capacity : 90 Lac yds

9.2.3 Machine and Equipments, Capacity and Capacity Utilization:

Sl No. Name of the Machine

Origin and Year of Purchase

No. of Machine

Installed Capacity Yds/Day

Target Production Yds/Day

Actual Production Yds/Day

Capacity Utilization

1 Warping 2 30000 28800 14400 502 Seizing 1 25000 20000 12000 603 Loom Picanal (PGW) 40 7580 6068 5098 844 Loom Ruti 34 6443 5150 4326 845 Loom Picanal (GTM) 20 4000 3034 2548 84

9.2.4. Last Three Years Production (in Lac yds)

Sl. No. Product 2005-06 2006-07 2007 (July07-Dec 07)1 Cotton Woven Fabric 25 32 182 Total 25 32 18

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9.2.5 Reason of Production Shortfall during July 2007-December 2007

Sl. No.

Reason of Production Shortfall (Yes/No)

1 Electricity Failure Yes2 Shortage of Raw Material No3 Shortage of Working Capital Sometimes4 Lack of Proper Planning as per export order5 Misleading Lead Time/Procurement Time No6 Lack f Spare and Accessories Depend upon import

item7 Strike/Unrest No8 Natural Disaster No9 Shortage of Skilled Manpower Sometimes

9.2.6 Manpower as on 31st December 2007:

Level of Skill ness Education Requirement

Existing Shortfall Shortage (%)

Managerial Level B. Sc/M.Sc./MBAin Textile Engg.

1 1 - -

High Skill/Expertise Level

B. Sc in Textile Engineering

3 1 2 66.6

Moderate Skill Level Diploma in Textile Engineering

6 2 4 66.6

Skilled Labour Skilled by Experience 125 106 19 15Semi-Skilled Labour Skill ness developing by

Work 80 80 - -

Unskilled Labour Trainee/Learner 90 80 10 11

9.2.7 Product Quality

This mill produces different type of fabric (Plain, Twill, Satin and different Dobby design) with average quality.

It has approximately 1.5-2% wastage, but they achieve hardly 84% of their target.

9.2.8 Conclusion

From the above table it is clear that the shortfall of production is caused mainly for shortage of skilled manpower. It is assumed that a 14% production shortfall occurs due to shortage of Textile Technologists.

102

9.3 Case Study of a Knit Dyeing Mill

9.3.1 Introduction

Jinnat Apparels Ltd is situated at Sreepur, Gazipur. In respect of technical point of views (machines, raw materials, production planning, sequence and operation, maintenance, utility service, store and inventory control, cost analysis), it is a very good graded Knit Dyeing Mill and it has a strong base of financial aspect and marketing activities. This Mill is 100% export oriented and running up to now with profit.

9.3.2 A brief description of Jinnat Apparels Ltd

1. Name of the Mill / Industry : Jinnat Apparels Ltd

2. Nature of Ownership : Private Limited Co.

3. Year of Establishment : 2005

4. Authorized Capital : Tk.806129460; Paid-up Capital Tk .90000000

5. Land Area : 4.75 Bighas; Purchased

6. Physical Structure : Pucca.

7. Type and Nature of the Mill : Knit Dyeing Mills

8. Capacity of Machine/Equipment : See separate sheets

9. Stock Position and Volume of Shortfall (July 2007- Dec.07):

Table 1: Stock Position during Quarter ended in December 2007

Types of Stock Stock (Kg) Value of Stock(Tk)

Dyes & Chemicals 110000 33000000Others 15000 3000000

There was no shortage of raw material and product to be delivered in the mill during July 2007- Dec.07

10. Last three year’s production (in Kg):

Table 2: Production history of last 2 years

Sl. No. Products 2005-06 2006-07 2007 (July 07-Dec.07

1Cotton knitted fabric 2911424 3919089 1969049

Total 2911424 3919089 1969049

It is clear from the history of last year’s XKDML that the organization is running as a standard industry does. There is, always around 10 percent production shortfall compared to installed capacity.

103

11. Production and shortfall during July 2007- Dec.07:

Table 3: Production and shortfallM/C No of

M/CAvg. Capacityper day per M/C (Kg)

Total Capacityat 100%

Target Prod.(Kg)

Achieved Prod.(Kg)

Shortfall(Kg)

Shortfall(%)

Dyeing 12 1275 15300 14000 13127 873 6.2

Finishing 2 12000 24000 21600 13127 8473 39.2

The loss of production is around 6.2% (from table 3). This is the only reason of skilled manpower shortage.

12. Cost of goods sold:

Raw materials35%

Salary & wages9%

Store & spares0%

Repairs & Maintenance4%

Depreciation14%

Water, power & fuel8%

Admin and Saling6%

Financial11%

Other expenses3%

Profit10%

Figure 1: Parameters of Cost Calculation of goods sold

According to the parameters given in figure 1, the sale price was calculated.Calculation of Sale price during July 2007- Dec.07:

Table 4: Cost of production and sale price of goods

Products Cost of Prod. (Tk/Kg) Sale Price (Tk/Kg) Total Revenue(Tk)

Profit(Tk)

Dyed fabric 65.5 74.6 14,68,91055 1,79,18346

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13. Reasons of production shortfall during July 2007- Dec.07:

Table 5 : Causes of Shortfall of Production during July 2007- Dec.07

Sl. No.

Reasons of Shortfall Shortfall during the Quarter

01 Electricity failure X02 Shortage of raw materials X03 Shortage of working capital X04 Lack of proper planning X05 Undesirable influence by top none technical management X06 Lack of spare parts and accessories X07 Strike / unrest X08 Natural disaster X09 Shortage of Skilled Manpower √

From table 5, it is clear that there is only one category of production shortfall; this is the shortage of skilled manpower. It is assumed that 6.2% of production shortfall occurs due to shortage of textile technologists.

14. Number of Shifts, Working Hours and Days during July 2007- Dec.07:

Table 6: Working hrs (effective power supply hrs)No. of Shifts per Day

Total No. of Shifts during July 2007- Dec.07

Total No. of Days Worked during the Quarter

Total No. of Working Hours during the Quarter

3 255 150 3600

15. Raw Materials / Inputs Used during July 2007- Dec.07: Total: 984524.5 Kg

16. Investment:

Table 8: Investment at different levels

Fixed Assets in Tk. Working Capital in Tk.Original Value Present Depreciated Value In Cost Price as on 31st December 2007

80.61 Crores 71.61 crores 5 crores

105

17. Manpower as on 31st December 2007:

Table 9: Manpower Assessment at different levels

From Table 9, we can assessed the section wise skilled manpower by fig. 2A

0%

20%

40%

60%

80%

100%

120%

PhD/M.Sc/ MBA B.Sc Diploma Trade Course

Sho

rtfa

ll of

Tex

tile

Tec

hnol

ogis

ts (

%)

Figure 2: Requirement of textile engineers and technologists at different level

106

18. Assessment of manpower of 15.3 Tones Capacity (Ideal Case)

An Organogram of Required Textile Technologists in Knit-Dyeing

PhD/M.Sc/ MBA = 1, B.Sc = 8 and Diploma = 11

N.B: There must be added 15% manpower along with this assessment for the reliever duty

Manager Planning, R & D, Central MIS (M.Sc/B.Sc.):1

GM (PhD/M.Sc./MBA): 1

Manager Prod. & Q.C. (B.Sc.): 1


DGM Plant (B.Sc.):1

Purchasing (Dip.):1

Sales (Dip.):1

Marketing (B.Sc./Dip):

1

Manager Maintenance & Utility (B.Sc.): 1

A. Shift AM/SPO B.Sc:1

B. Shift AM/SPO B.Sc:1

C. Shift AM/SPO B.Sc:1

PO/AP.O.(Dip.): 2Back process &

Lab: 1

PO/AP.O.(Dip.): 2Back process&

Lab: 1

PO/AP.O.(Dip.): 2Back process&

Lab: 1

Maintenance in Charge (Dip.): 1

In Charge of Utility (Dip.):1

107

19. Product Diversification Matching with the Need of RMG Sector and

Quality Improvement:

Existing Supply/Yr of Products to RMG Sector

Scope for Additional Production and Supply to RMG Sector

Scope for Quality Improvement of the Products

Products Quantity Yes / No How? Yes / No How?Knit dyeing Dyed fabric 4 Million Kg Yes By increasing skill

manpower Yes By increasing skill manpower

9.3.3 Conclusion:

From the above study, it is clear that the reason of shortfall and quality of production is the shortage of textile technologists. We have seen that there is 13% shortage of textile technologists at different levels. It is possible to get 100% targeted production and quality by deployment of skilled textile Engineers. So, it is very essential to recruit textile technologists of different levels in all the textile mills in the shortest time.

108

9.4 Case Study of a Knitting Mill

9.4.1 Introduction:

The case study of Mymun Textile Mill Ltd. is located at Sreepur, Gazipur. It is a high-graded Knitting Mill with the strong base of financial aspect and marketing activities. From the technical point of views (machines, raw materials, production planning, sequence and operation, maintenance, utility service, store and inventory control, cost analysis), this Mill is 100% export oriented and it is running till now with profit.

9.4.2 A brief description of Mymun Textile Mill Ltd.

1. Name of the Mill : Mymun Textile Mill Ltd.

2. Nature of the Ownership : Private Limited Company

3. Year of Establishment : 2005

4. Authorized Capital : Tk: 25.07 Crores

5. Paid-up Capital : Tk: 2 Crores

6. Land Area : 5 Bighas

7. Physical Structure : Pucca + Pre-Fabricated

8. Type or Nature of Mill : Knitting

9. Machine and Equipments, Capacity and Capacity Utilization:

Sl No.

Name of the Machine

Origin and Year of

Purchase

No. of Machine

Installed Capacity Kg/Day

Target Production

Kg/Day

Capacity Utilization

(%)1 Circular

KnittingMayer & CieGermany, 2004

45 15750 14175 90

Total 45 15750 14175 90

10. Stock Position and Volume of Shortfall (July 2007-December 2007)

Types of Stock Stock (Kg) Value of Stock (Tk)Yarn 44500 5340000

Fabrics 10550 1751300Total 55050 7091300

There was no shortage of raw material in the mill during July 2007 to December 2007.

11. Last Three Years Production (in Kg)

Sl. No. Product 2005-06 2006-07 2007 (July07-Dec 07)1 Cotton Fabric 2358665 Kg 4531746 Kg 2444912 Kg2 Total 2358665 Kg 4531746 Kg 2444912 Kg

Production history of last two years shows that the Mill is running well.

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12. Production and Shortfall During July 2007-December 2007

Machine Nos Product Capacity/frame/hr (Kg)

Target Production Kg/hr

Achieved Prod Kg/hr Shortfall

Circular Knitting 45 Cotton Fabric 15 13.2 12.94 2%

There was a negligible amount of production shortfall due to the deployment of skilled textile technologists.

13. Calculation of Sale Price During July 2007-December 2007

Products Cost of Production Sale Price Total Revenue(Tk)

Profit(Tk)

Knitted Fabric 146.5 Tk/Kg 166.5 Tk/Kg 40,70,77848 48898240

14. Reason of Production Shortfall During July 2007-December 2007

Sl. No. Reason of Production Shortfall During The Quarter1 Electricity Failure X2 Shortage of Raw Material X3 Shortage of Working Capital X4 Lack of Proper Planning X5 Misleading Lead Time/Procurement Time X6 Lack f Spare and Accessories X7 Strike/Unrest X8 Natural Disaster X9 Shortage of Skilled Manpower √

From the above table it is clear that the shortfall of production is only for shortage of skilled manpower. It is assumed that the negligible amount of (only 2%) production shortfall due to the presence of Textile Technologists.

15. Cost of Good Sold

Figure 1: Parameters of Cost Calculation of goods sold

16. Number of Shifts, Working Hours and Days During July 2007-December 2007

No. of Shifts/Day Total No. of Shifts During July 2007-December 2007

Total No. of Days During July 2007-December 2007

Total No. of Working Hours During the

Quarter

Other expenses2%

Raw materials68%

Profit14%

Admin1%

Financial Expenses4%

Depreciation6%

Salary & wages4%

Water, power & fuel1%

110

3 350 175 4200

17. Raw Material/Input Used During July 2007-December 2007

469361 Kg

18. Wastages in terms of % (2007)

Yarn Fabric Total0.5% 0.5% 1%

19. Investment:

Fixed Assets in Tk Working Capital in TkOriginal Value Present Depreciated Value In Cost Price as on 31st

December 200725.07 Crores 23.07 Crores 5 Crores

20. Wages and Salaries (Tk) as in December 2007

Period Officers and Staffs LabourDecember 2007 7,50,000.00 10,50,000.00


Level of Skill ness Education Requirement Existing Shortfall Shortage (%)

Managerial Level PhD/M.Sc./MBAin Textile Engg.

1 1 0 0


B. Sc in Textile Engineering

5 5 0 0

Moderate Skill Level

Diploma in Textile Engineering

11 10 1 9%

Specialized Skill Level

Trade Course 16 15 1 6%

Skilled /Unskilled Labour

Skilled by Experience

390 410 2 (+5)%

From the above table we have a clear idea about the present condition of overall situation of different mills and we can simulate this case in real/practical fields for engineers and technicians in the following ways:1) Salary of engineers/technologists is a minor amount compare to the out-put (Production & Quality)2) The higher the deployment of engineers/technologists, the higher is the total out-put

111

0.00

2.00

4.00

6.00

8.00

10.00

12.00

B.Sc/M.Sc/MBA in Textile

B.Sc in TextileEngineering

Diploma inTextile

Technology

Trade Course

Shor

tfal

l of

Tex

tile

Tec

hnol

ogis

ts

Figure2: Requirement of Textile Engineers and Technologists at Different Level.

22. Product Diversification Matching with the Need of RMG Sector and Quality Improvement

Sub-Sector Existing Supply/Yr of Products to RMG Sector

Scope of Additional Production and Supply to RMG Sector

Scope for Improvement of the Product

Products Quantity Yes/No How? Yes/No How?Knitting Fabric 7619577 Kg Yes By Increasing

Skilled Manpower

Yes By Increasing Skilled Manpower

9.4.3 Conclusion:

In conclusion, we can say that the only cause of the shortfall of production is the shortage of Textile Technologists/Engineers. There is only a little 6% shortage of Textile Technologists/Engineers at different levels. It is possible to achieve 100% target production and also quality by recruiting Textile Technologists/Engineers. So it is essential to appoint Textile Technologists/Engineers at different levels in all the textile mills

112

9.5 Case Study of a Home Textile 9.5.1 Introduction: This is a case study ARKAY Textile Mill Ltd. This Mill is situated at Zeerani, Kashimpur

Gazipur. It is a moderate graded mill and has a strong base of financial aspect and marketing activities. It is a 100% export-oriented mill and running up to now with profit.

9.5.2 A brief description of ARKAY Textile Mill Ltd.

1. Name of the Mill : ARKAY Textile Mill Ltd.2. Nature of the Ownership : Private Limited Company3. Year of Establishment : 19894. Authorized Capital : Tk: 60Crores5. Paid-up Capital : Tk: 30 Crores6. Land Area : 12 Hectors7. Physical Structure : Pre-Fabricated 8. Type or Nature of Mill : Home Textile (Weaving and Dyeing Mill)9. Machine and Equipments, Capacity and Capacity Utilization:

Sl No.

Name of the Machine

Origin and Year of Purchase

No. of M/Cs

RPM/m/min

Installed Capacity Yds/Day

Target Production Yds/Day

1 Sizing M/c West Point, USA 1989

1 60 76000 38000

3 Rapier Loom Chaina, 1989 23 200 2576 23184 Shuttle Loom Pakistan, 1989 72 150 6048 54435 Sulzer Loom

(Projectile)Sulzer Rueti, Switzerland1989

57 350 8051 7182

10. Stock Position and Volume of Shortfall (July 2007-December 2007)

Types of Stock Type Stock (MT) Value of Stock (Tk)Yarn 7/116/1, 20/1, 24/1,

20/2, 16/2, 20/1(PC)343 41160000

Chemicals 45 1,35,00000

There was no shortage of raw material in the mill during January 2007 to December 2007.

11. Last Three Years’ Production (in Kg)

Sl. No. Product 2005-06 2006-07 2007 -081 Plain Sheets 20,70,661 yds 2106721 yds 2073973 yds2 Terry Towels 5584690 yds 5417141 yds 7542178 yds3 Tea Towels 780736 yds 865121 yds 839167 yds

12. Production and Shortfall during July 2007

Sl No.

Name of the Machine No. of Machine Installed Capacity Yds/Day

Achieved Production Yds/Day

Capacity Utilization Yds/Day

1 Sizing M/c West Point, USA 1989 25200000 9344770 37%3 Rapier Loom Chaina, 1989 1624563 828341 51%4 Shuttle Loom Pakistan, 1989 8880862 5583336 63%5 Sulzer Loom

(Projectile)Sulzer Rueti, Switzerland1989

2712565 2083569 69%

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13. Calculation of Sale Price during July 2007-December 2007

Products Cost of Production Sale Price Total Revenue(Tk)

Profit(Tk)

Plain Sheets 61.6 Tk/Yd 72.2 Tk/Yd 152105256.2 22331243 Terry Towels 53.2 Tk/Yd 58.5 Tk/Yd 316902748.5 28710847Tea Towels 65 Tk/Yd 72.5Tk/Yd 62721272.5 6488408

14. Reason of Production Shortfall during July 2007-December 2007

Sl. No. Reason of Production Shortfall During The Quarter1 Electricity Failure X2 Shortage of Raw Material X3 Shortage of Working Capital X4 Lack of Proper Planning X5 Misleading Lead Time/Procurement Time X6 Lack f Spare and Accessories X7 Strike/Unrest X8 Natural Disaster X9 Shortage of Skilled Manpower √

From the above table, it is clear that the shortfall of production is caused only by the shortage of skilled manpower. It is assumed that a huge, 50% production shortfall occurs due to the shortage of Textile Technologists.

15. Cost of Goods Sold

Rent, Tax, Interest & Insurance

1.8%Repairs &

Maintenance0.9%

Dyes & Chemicals6.5%

Raw materials72.3%

Store & spares1.8%

Salary & wages2.5%

Depreciation3.5%

Development2.6%

Water, power & fuel7.5% Other expenses

0.6%

Figuare1: Parameters of Cost Calculation of goods sold

114

16. Number of Shifts, Working Hours and Days during July 2007-December 2007

No. of Shifts/Day Total No. of Shifts During July 2007-December 2007

Total No. of Days During Jan. 2007-December 2007

Total No. of Working Hours During the Quarter

3 1050 350 8400

17. Raw Material/Input Used During July 2007-December 2007

Yarn Chemicals1006678 Kg 97,000 Kg

18. Wastages in terms of percentage (%) During the Year 2007:

Yarn Fabric Chemicals1% 2.5% 1%

19. Investment:

Fixed Assets in Tk Working Capital in TkOriginal Value Present Depreciated Value In Cost Price as on 31st December

200760 Crores 30 Crores 7 Crores

20. Wages and Salaries (Tk) as in December 2007

Period Officers and Staffs LabourJan.- December 2007 11,50,000.00 26,50,000.00


Level of Skill ness

Education Requirement

Existing Shortfall Shortage (%)

Managerial Level

PhD/M.Sc./MBAin Textile Engg.

1 0 1 100%


B. Sc in Textile Engineering 6 0 6 100%

Moderate Skill Level

Diploma in Textile Engineering

20 5 15 75%

Specialized Skill Level

Trade Course 25 6 19 76%

Semi-Skilled Labour

Skill ness developing by Work

405 405 0 0%

Unskilled Labour

Trainee/Learner 491 491 0 0%

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0%

20%

40%

60%

80%

100%

120%

B. Sc/M.Sc./MBA inTextile Engg.

B. Sc in TextileEngineering

Diploma in TextileEngineering

Trade Course

Sho

rtfa

ll o

f T

exti

le E

ngin

eers

Figure2: Requirement of Textile Engineers and Technologists at Different Level.

From fig.2, it is clear that there are not good technical persons in this company.

22. Product Diversification Matching with the Need of RMG Sector and Quality Improvement

Sub-Sector Existing Supply/Yr of Products to RMG Sector

Scope of Additional Production and Supply to RMG Sector

Scope for Improvement of the Product

Products Quantity Yes/No How? Yes/No How?Weaving Fabric 53172927

7.2Yds



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9.5.3 Manpower Assessment of a Woven Dyeing

Organogram of Required Textile Technologists in Woven-Dyeing Assessment has done on the basis of 100000 Meters Capacity/day

Manager Planning, R & D, Central MIS (M.Sc/B.Sc.):1

GM (M.Sc./MBA): 1

Manager Prod. & Q.C. (B.Sc.): 1


DGM Plant (B.Sc.):1

Purchasing (Dip.):1

Sales (Dip.):1

Marketing (B.Sc./Dip):1

Manager Maintenance & Utility (B.Sc.): 1

A.Shift SPO/AM B.Sc:1

B.Shift SPO/AM B.Sc:1

C.Shift SPO/AM B.Sc:1

PO/AP.O.(Dip.): 2Back process &

Lab: 1

PO/AP.O.(Dip.): 2Back process & Lab: 1

PO/AP.O.(Dip.): 2Back process & Lab: 1

Maintenance in Charge (Dip.): 1

In Charge of Utility (Dip.): 1

PhD/M/Sc./MBA=2, B.Sc=8, Diploma=10

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9.5.4 Conclusion

From the above study, it is clear that the reason of the shortfall of the production is due to the shortage of

Textile Technologists/Engineers and working capital. We have seen that there is about 35-100% shortage

of Textile Technologists/Engineers at different levels. It is possible to achieve 100% target production as

well as quality by recruiting Textile Technologists/Engineers here.

We have analyzed the overall situation of this Home Textile Industry and found the worst Operational

Condition everywhere due to the shortage of specialized textile persons.

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10.1 Establishment of a Computerized Data Bank/Database at DOT

Objective:

According to the TOR, the task is to update database and enrich portal of DOT to facilitate RMG, textile

sector and related business houses with information and prepare MIS reports for Ministry of Textiles for FY

2007. It also includes identification of inadequacy of software, hardware of the existing computer system of

DOT and to submit a proposal to meet the demands in a competitive environment in the globalize world

Scope of Work:

To develop a functional database incorporating findings of the ongoing survey work including

requirement of textile technologists at different levels and serve as a databank for textile sector.

To enrich existing web portal of DOT

To suggest hardware and manpower to strengthen MIS of DOT to increase its efficiency.

Task Accomplishment:

Database system has been designed, implemented and tested and ready to be delivered and installed It is used for survey data entry and data editing by the consulting firm. The database is also used for various report generation for analysis. All reports can be uploaded to DOT Web portal.

A report on manpower and hardware requirement for strengthening DOT MIS that was submitted earlier is also included in the following section.

Data Bank:Information of 7,543 industrial units is entered in database in 17 sub-sectors. With time this database will grow larger and larger demanding better management of data and efficient operations for report/statistics generation.

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What is a database?:

A database is an organized collection of data. A database management system (DBMS) such as Access, Oracle or SQL Server provides software tools to facilitate addition, modification or deletion of data from the database, analyze data and produce reports of interest.

Relational database:

Relational database is perceived by user as a collection of tables representing relations among data . Different tables are linked through keys (foreign keys)

The tables correspond to entities that are modeled through their attributes represented by fields. Any single record can be uniquely identified by primary key(Industrial unit code)

Advantages: Structural independence

Improved conceptual simplicity

Easier database design, implementation, management, and use

Ad hoc query capability with SQL

Powerful database management system

Characteristics of “Internet age” web databases:

• Flexible, efficient, and secure Internet access.

• Easily used being located geographically apart.

• Supports complex data types and relationships.

• Seamless interfaces with multiple data sources and structures.

• Simplicity of conceptual database model .

• Many database design, implementation, and application development tools.

DBMS can be divided into two categories:

• Standalone databases - oriented toward single-user applications and reside on standard personal computers (hence the term desktop).

• Server databases contain mechanisms to ensure the reliability and consistency of data and are geared toward multi-user applications.

Adopted System Design Methodology: Software Development Life Cycle (Systems Analysis and Design):

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Data Information Knowledge Action

The steps in system analysis are as follows:

• Feasibility Analysis

• Need Analysis

• System Design

• Implementation

• Installation

• Training

• Maintenance

Feasibility Analysis:

DOT has rightly decided to undertake such a survey as now evident with the global recession and economic crisis. The fact is that many orders are now being withdrawn. Again opportunities are on the table to have some jobs provided we have skill in those specific areas. This justifies such a survey of the status of manpower in textile sector that can help us strengthen ourselves through necessary training in areas of demand.

Need analysis was carried out through sending survey questionnaire to key people, Walkthroughs and interviewing key personnel and through workshops

Survey questionnaire:

This survey covers 15 sub-sectors of textile such as spinning, large weaving, knitting, dyeing and printing , garments, silk, textile Institutes etc and 15 sets of questionnaires were designed that include all relevant information. We trained surveyors with requisite qualification and they collected data as per format .Inconsistent data were later validated

Preliminary System Analysis/Design:

This task involves extraction of logical entities and attributes (data fields) from survey forms and defined in a data dictionary (enclosed in annexure volume).

Logical entities are for example: – Industrial unit general information– Capacity – Actual Production– Textile Professionals information (diploma, degree, postgraduate)– Manpower and more

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We have identified about 20 logical entities.

Detailed design (database and software Design):

We have designed database structure as per preliminary analysis from database schema/tables for actual implementation which also includes designing software (application) modules of the whole system. Software architecture is designed that defines structural relationship of modules. Graphical User Interface (GUI) in the form of Web interfaces is designed with validation

Implementation & Testing:

Database has been implemented in Oracle 10g DBMS. Tables are created from schema. There are 20 tables (files) comprising all data and several views. Various constraints, access control and security features are embedded in the database. We have carried out the following works:

• Applications (modules) are coded

• Modules are integrated

• Application platform: Server based applications and client side has web interface

• Can be deployed in Internet for access to all stakeholders

Training:

The philosophy of objective of training is transmission of needed skill to users so that they can comfortably run and maintain the system effectively. Training program should be designed in such a manner so that it is consistent with the trainers background Trainees. Relevant industry people and government officers can be offered an appreciation course. We have submitted a training program to DOT.

Maintenance:

Maintenance cost is usually considered about 60% of the budget of computerized system. Software testing can never ensure absence of bugs and errors. Maintenance extends through the life of the software by adapting to changing needs of the users. It is more worthwhile to maintain the system than developing a new one. Both preventive and developmental maintenance should be adequately deal. To attain global standard, software maintenance should not be neglected as we are used to do in our country.

Scope of Textile database system:

Survey data of each of the industrial units of textile sub-sectors comprising capacity, production, imports, investments, manpower, existing textile technologists information and requirements of textile technologists are being stored in the database.

Scope of DOT Data base:

• The database can be updated

• It can serve as data bank for textile sector

• Various reports can be generated for decision making

• Accessible to stakeholders via Internet

Database system deployment:

• Multi-user and Web oriented

• Such system will allow authorized users to access/update information through Internet

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• Information can be published through existing DOT website

• Or, DOT can build their own web site with web server at their premise.

Database system architecture: Client server three-lier architecture Multiple users can access server based database simultaneously .Back end: Database and applications (software) are in back end. Front end is Web interface

Application architecturesApplication architectures

Updating of Database:

Front end is web based so that updating is possible on line. As such industries can also download survey forms and submit on line. A comprehensive plan to involve industry to send updated information has to be engineered so that DOT can be proactive to develop strategy and implement projects to provide necessary infrastructure for textile education

Database Management System for the project:

Database management system (DBMS) is industry standard Oracle 10g. Oracle’s strength is security, access control, optimized query plan for speed and back up facilities. Software are applications in PHP scripts to query the database for data entry, updating, and report generation

Capability of database for sector-wise MIS reports:

All sorts of MIS reports and industry information can be produced from the database. The data in this draft report is produced from the database.

Installed Capacity & capacity utilization report Actual production report Raw materials import Domestic production of textile fabrics Professionals with textile background– diploma, graduate, and post graduate Required professionals Status of the industries – running/closed Expansion program – yes/no .Non-professional staff/Workers – skilled/unskilled, male/female. Capacity information of the Textile academic Institution – universities, colleges, institutes TVIs (Public

and private sector)

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Academic program (diploma/degree) Existing faculty Available seats Year wise passed out students Required faculty

Strengthening of MIS Section of DOT:

Present Status:At present, a Deputy Director of DOT is in charge of IT and MIS section and a computer operator is there. Existing hardware includes 3 desktop computers, one server, one scanner, one hub-switch and MLSS for networking and access to Internet. We think that computer experts like qualified system analysts and programmers are required to strengthen MIS section in view of the new database system (databank of textile sector) that we will handover to DOT.

Proposal for Strengthening of MIS of DOT:

We recommend creating posts for system analysts and programmers to strengthen MIS section of DOT that can address the present day demand. DOT should be able to produce various MIS reports. We also suggest that DOT should involve industry so that industries update their data and stakeholders can obtain updated information. We also propose to upgrade the present hardware so that DOT to meet the demand of computation, generation of reports and analysis.

Our completed proposal is given in next section.

Tasks ahead:

Installation of the database system at DOT premise. Provide needed training

(A week-long training program is submitted to DOT. We will support maintenance of the database in short term but DOT should adopt a maintenance plan for long term)

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Conclusion

The database system can serve the objective of the project. We expect that DOT can use it effectively. A maintenance plan of the system has to be envisaged in long term to eliminate the need of building a new system. A mechanism should be developed to inspire industries to update the database and be proactive to access demand-gap of technologists and make short term and long term planning for strengthening of textile educational infrastructure so that our country remains globally competitive.

Considering the inadequacy of manpower and hardware of DOT we recommend strengthening of DOT as per our submitted proposal. We import almost all machinery in textile sector but there is scope of local production of spare parts and not-so-complicated machines. There is a need to survey current local textile machinery production and textile curriculum should emphasize such aspects as textile machine design and electrical and computerized system design. Further regular workshops and seminars should be arranged for textile sector development

10.2 Strengthening Electronic Website / Portal of DOT for MIS & Data Access to Stakeholders

Besides we have developed a web portal which presents information in a unified way. The web portal is user-specific, and provides customized views from the point of stakeholders in textile sector. The portals provide a way for organizations to provide a consistent look and feel with access control and procedures for multiple applications. In addition, most portal solutions today can allow internal and external access to specific public information using secure authentication or single sign-on. The textile web portal has links to data bank of about 7,543 industrial units in 17 sub-sectors, MIS reports, detailed information of institutes, colleges and universities offering textile education – certificate, diploma and baccalaureate degrees in both public and private sector- along with all the usual features of a web portal.

The main features of the web portal are outlined below.

1. It is on line and information of the web portal can easily be updated any time 2. Stakeholders can access relevant information 3. Comprehensive to cover 17 sub-sectors of textile4. Information of a textile industrial unit can be accessed instantly from Internet5. Information comprises installed capacity and actual production, investments, import of raw materials,

manpower, professional information, required professionals, problems and status of operation.6. User access control is also established

The web portal is built so that it can provide valuable information for policy making and decision making process in textile sector. Al sorts of stakeholders related to textile sector can be directly benefited from this portal.

The web portal has home page and links to various pages for relevant information for stakeholders. A link to “Textile Survey 2008” is made that contains information of the back ground of the project and description of major activities that lead to accomplishment of survey work. We have provided a list of the distinguished consultants and faculty members of universities who contributed to this project. The survey work comprises 17 sub-sectors of textile sector and sample survey forms and instruments can be found in this link. In the home page there is a link to “Reports” particularly targeted for stakeholders giving a quick access to present scenario of 16 sub-sectors of textile sector. This link contains various links to different MIS reports and summarized data as well as detailed reports. Different types of reports are presented in different pages.

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This draft report of the survey work is based on the information of the data bank. There is also a link to the draft report of the survey work so that stakeholders can make comments on the report as well. We provide print-outs of the web pages of the portal.

The web portal will can provide valuable information for policy making and decision

10.3 Inadequacy of Software and Hardware of the Existing DOT Database and Remedial Measures for Making It Safer, User-friendly and Accessible to all Relevant Users.

Department of Textiles was created in the year 1978 as an attached Department under the Ministry of Textiles. This Department played a vital role to develop Textiles and Handloom sector. Besides, Department of Textiles imparts technical training through its educational Institutions to fulfil the demand of Textile technician and skilled manpower for textile sector. The department is controlling 4 (four) Textile Colleges (4 year degree course), 6(six) Textile Institutes (4 year diploma course) 40 (forty) Textile Vocational Institutes (2 year Secondary School Certificate equivalent course) which are located at different districts of Bangladesh.

The Department plans to establish more colleges and institutes to meet the growing requirement of textile engineers and technologists as RMG export continues to increase and expand.

The main objectives of the Department are:

To fulfil the demand of skilled manpower for Textile Sector.

To Develop and expand existing Textile Institutions.

To collect data, compilation & publication of MIS report for textile sector.

To Assist Ministry of Textiles in formulation of National Textile policy.

To survey & inspect overall Textile Industry as and when required by the Government.

In line with the objective, it was felt utmost important to assess the present and future requirement of textile technologists for different sub-sectors of textiles and undertake necessary steps to turn out skilled manpower needed. Ministry of Textile undertook a survey and prepared an MIS with a historical database from 1972 to 2001. But necessary up-gradation work did not happen. As such the department has launched the project “Survey of Textile Sector, upgrade database /MIS and to assess the requirement of Textile Technologists of different levels” and a consulting firm (Joint venture of M.I.Choudhury & Co and BPMI) and is appointed in March, 2008 to perform the said work.

According to TOR, the main objective of the study is “to update the sectoral information and to establish a computerized databank in DOT useful for providing policy support and technical assistance to the Textile industry and to formulate a series of recommendations coupled with action plans for strengthening the backward linkage of Bangladesh local and export oriented RMG”.

Also according to the TOR, the specific objective “is to update the database by the survey data and strengthen electronic website/portal of DOT making it accessible to stake holders – RMG and Textile Sectors and related business houses, prepare MIS report for the Ministry of Textiles for FY 2007 covering the public and private sector textile industry”.

Besides survey and technologists assessment, scope of work also includes “to identify inadequacy of the software and hardware of the existing installation of DOT database and undertake remedial actions for making it safer, user friendly and accessible to all relevant sources”.

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10.3.1 Strengthening of MIS of DOT

In view of above, consultant has undertaken to develop database system based on the survey work of 15 sub sectors. The primary work regarding database system development was presented in inception meeting held on 17.4 2008 defining specific tasks to be performed by consultant and exchange views to have a consensus on successful implementation of the project.

In the workshop, Dr. Mokbul Ahmed Khan, Team Leader on the part of consultant stressed that unless the database is updated periodically, MIS will not be effective. Database System Expert Md. Ershadul H. Choudhury presented the structure of the proposed database (tables/files and fields) with 24 tables and logical diagram (ER diagram). It may be mentioned that overall work of database system and MIS is being guided by Prof. Dr. M. Kaykobad of BUET.

After detailed discussion Director, Department of Textiles specifically requested to provide a report on the manpower and hardware requirement for strengthening MIS section of the Department of Textile.

10.3.2 Proposed Databank of DOT

The ongoing project will produce huge data of textile sector and consultant is developing web database system in spirit of TOR so that information is accessible to all. It will require installation of a server eventually at DOT premise at BTMC Building, Kawran Bazar, Dhaka.

The web based database system (client-server architecture) comprises of the following:Backend: (i) Oracle 10g DBMS running in a server

(ii) Server side applications in PHP

Middle tier: Report generators (crystal report) and PHP applications Front end/Client side: Web based on line reports in PHP and HTML.

We have found that existing installation of computer hardware at DOT are inadequate to establish the proposed system. As such additional hardware will be necessary to upgrade existing system for server. In addition qualified technical people will be needed for MIS and maintenance and up-gradation of data bank in future.

In this regard, we outline below a comprehensive proposal for strengthening of MIS with the objective to establish a web based data bank and maintenance.

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10.3.3 Proposal for Strengthening of MIS of Department of Textile

(1) Services of the MIS system

Features of Proposed MIS System:

(i) The database system that is being developed by consultant will be installed in DOT premise. (ii) Database system will be web based/online. (iii) The data base system will be accessible to stakeholders in textile sectors. (iv) The divisional offices of DOT will have access to the system through Internet to submit (upload)

information to head office online.(v) All the colleges and institutes under the department will have access to submit information to DOT office

online.(vi) Student information system with notice of admission, list of selected candidates, interview date, and all

other relevant information and notices can be presented on line.(vii) The web portral will allow students to know examination results on line ( like Secondary and Higher

secondary education Board).(viii) All reports of colleges, sub-departments can be submitted on line and viewed by DOT officials.(ix) Divisional offices, Colleges and institutes should have own local area network of computers (LAN) for

administrative purposes having broad band internet connection.(x) Necessary hardware and software support to divisional offices, colleges and institutes will be provided

from head office MIS department.(xi) DOT will publish specific information in the web to concerned stakeholders-

exporters/importers/entrepreneurs/business houses.

10.3.4 The Proposed Organization of MIS section

It is needless to say that for efficient management of this important foreign currency earning sector of Bangladesh potentials of Information and Communication Technology (ICT) should be fully explored and exploited to improve quality of policy/decision making by making right piece of information available at the right time. Since in the coming days MIS Department will be playing a very significant role in the development of this sector, this department must be headed by a person hierarchically placed near the top so that the department can play its due role in a befitting manner. In that sense the Department should be headed by a manager (Systems) followed by one Systems Analyst, one programmer, 2 Assistant Programmers and some data entry operators as per need. This will in turn necessitate increase of further computing resources for the Department. This will also necessitate availability of internet connection\domain for hosting webpage etc.

However, we feel that department should build its above mentioned manpower capacity in phases and increase its strength in future depending on need. As such presently manpower strength may comprise with fewer people as mentioned above and we propose one programmer, two assistant programmers and two data entry operators for strengthening of MIS. We outline below responsibilities and required qualification. MIS section should be run by competent technical people having academic background in computer science and engineering with bachelors degree or well trained people having university degree in science. The department will work as a team and directly report to Director or concerned Deputy Director. They should also coordinate with divisional offices, colleges and Institutes and relevant people in the Ministry. As such both experienced and fresh graduates are needed. Senior member will manage and coordinate and junior members will perform technical works under the guidance of senior member.

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10.3.5 Manpower

We outline the following Posts for MIS:

(i) Senior Member: A single post of Programmer

Programmer will lead the MIS team, motivate subordinates and ensure that works are done properly. He will be responsible to assess MIS need of DOT, perform requirement analysis and submit project proposals for both software and hardware. He will make long term and short term plan and prepare budget of the department. In addition he will guide and supervise MIS related works such as software development, maintenance and up-gradation. He will strive in-house software development, testing and installation. He will coordinate with director/deputy directors and divisional DOT offices, colleges, institutes and provide guideline to them for MIS and computer systems. He will provide necessary in-house training to officers and staff to make them computer literate and use the system.

In addition he will be webmaster to maintain the in-house website and coordinate with BTMC and Ministry.

Qualification: Computer Science/Engineering graduate with 5 years of experience in relevant fields.(ii) Junior Member: Two posts of Assistant ProgrammerThe responsibilities of an assistant programmer will be to assist system analyst and work under his guidance. They will maintain the web site and update information (content management). They will be responsible for hardware maintenance, LAN and website. They will maintain 24-hours connection to in-house web server and back up server.

They will do computer programming including web programming and perform hardware maintenance and networking to keep the system up. They will provide back up services related to IT system of divisional offices, colleges and institutes and do what ever the tasks they are assigned for.

Qualification: Computer Science/Engineering graduates.

(iii) Data-Entry operator: Two posts

Minimum qualification of data entry operators is SSC/HSC having required computer training and skill in using software (MS Office) and operating systems, basic knowledge of computer hardware and at least on year of experience.

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10.3.6 Computer Hardware

Table 8.1: Estimate of Hardware for Proposed Computerized Online Databank

(Web based) of Department of Textile, Govt. of BangladeshSl. No

Description Quantity Unit Cost (Tk.)

Total Cost (Tk.)

1.1 Server (High configuration brand PC’s HP/Dell 2 ( One on-line andanother standby)

1,20.000.00 2,40,000.00

2. Online UPS 2 KVA ( 2 hours backup 2 1,10,000.00 2,20,000.003. Switch, 24 port (ASUS, Dlink) 2 12,0000.00 24,000.004. UTP cable for LAN upgradation 2 pack 15,000.00 30,000.005. Domain controller- Clone PC 1 40,0000.00 40,000.006. PC for IT department and others- Clone

machines4 40,0000.00 1,60,000.00

7. Server configuration, LAN setup LS LS 20,000.008. Tools- cable stripper, crimpers, different sized

pliers, screwdrivers, wrenches, hex setLS LS 3,000.00

9. High quality blank CD, DVD LS LS 2,000.0010. Antivirus software ( Bit Defender) 8,500.00

Total: 747,500.00

Total: Taka Seven Lac Forty Seven Thousand and Five Hundred onlySources of Information:[1] “Technical Proposal for Survey of Bangladesh Textile Industry to Up-date Database/ MIS and to Assess

the Requirement of Textile Technologists at Different Levels”, September 2007.[2] Tender Document for “Survey of Bangladesh Textile Industry to Up-date Database/ MIS and to Assess

the Requirement of Textile Technologists at Different Levels”, 2007. [3] DOT web site: www.dot.gov.bd [4] Other ministry websites.

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11.1 Productivity Improvement

Productivity is the ratio of output to input. According to the guideline book of International Labour Organization (ILO), productivity is broadly categorised into:

machine productivity, labour productivity, material productivity, and space productivity.

Bangladesh PT units those are designed to direct export or export through RMG units have made considerable progress in terms of machine productivity. Some space productivity has been in progress due to transfer of new technologies; to name few of those, we can mention the exploitation of high speed rotor, high speed shuttleless looms, high speed flat knitting machines, high speed bleaching, washing and dyeing ranges, etc. In terms of labour productivity and material productivity, Bangladesh PT has to enhance effort at least to surpass India, Pakistan and Vietnam.

Once technology is selected, the following remains in hand to address to enhance productivity:

production location,

organization type,

market orientation,

purchase /procurement system,

product category,

method of setting production standard,

testing and process control,

training & education,

maintenance approach,

payment system,

utility management, and

motivation program.

Production location: Production locations have been found to have certain influence on productivity. General interactions conducted by the DOT survey team with the factory personnel employed in different parts of Bangladesh reveals that the overall value added productivity including the labour productivity of the PT units at Dhaka & Chittagong EPZs as well as in the industrial belts of Gazipur, Tongi Narayangonj is

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Suggestions for Improvement Productivity & Product Quality of PTS

to Make the whole Textile Industry Competitive Locally and Globally

perceived to be higher than any places in rest of the parts of the country. The reason is that these industrial pockets are characterized with the abundant supply of skilled workers, good road transportations, supply of gas, presence of various service providers starting from Banks/insurance companies to consultants, sub-contractors, input suppliers, etc.

So, creation of more textile villages with the all needed infrastructural facilities could be a way to enhance national PT productivity.

Organization Type: The productivity of the units registered as incorporated body and practicing improved management system, closer to so-called modern corporate management, were found to have better productivity achievement than those practicing adhoc style management. The effort should be undertaken to characterize ideal management for each type of PT industries and that should be reflected in the educational & training curriculum of DOT. Also the industry should be motivated to understand the effect of management structure on productivity.

Market Orientation: It is the market that is finally has to be supplied with the goods to be manufactured or processed. The surveyed PT units with the poor market orientations were found making considerable delay & mistake in procuring and processing orders than those having skilled marketing personnel. The delay results in loss of annual working days causing decline of the productivity. On the other hand, effective sourcing or procurement facilitates prompt feeding to the industry and squeezes overall lead-time; this type of activity can also reduce the risk of up raw material hazard, cut wastage, and can be substantially be useful in improving quality and reducing rejection/reprocessing rate.

So, the PT industry’s market orientation & procurement of inputs should be improved through marketing and procurement training. DOT and other textile educational institutions should strengthen their curriculum along with the relevant cases studies and NITTRAD should conduct more market orientation & purchase operating training pertinent to Bangladesh PT-sub sectors in order to enhance productivity.

Product Category: Product category is also important in respect of productivity achievement. It is better to select product mixes on which factory staff is experienced or at least consultancy/advisory support service is available. Product specialization was found having very strong relation with the productivity enhancement. So, initiatives for necessary changes in curriculum and relevant training on product specializations should be undertaken by DOT and other training institutions.

Setting Production Standard: Huge evidences are available in the field that the method of setting production standard can influence production. The productivity of the industry utilizing predetermined time standard plus motion study is quite higher than those having no good conception on these. DOT should conduct experiments in cooperation with Bangladesh National Productivity Organization (NPO) and provide correct focus and recommendations in the curriculum so that industry could be benefited. Accordingly, DOT should revise its curriculum with possibly maximum theoretical exposure and practice class. Also DOT can prepare manual on work study and method of setting production standard for the different sub-sectors of the PT industry.

Payment System: It was well perceived from the field that the industry adopting incentive system over average production level has obtained very good results in terms of productivity. DOT should conduct further field studies to formulate efficient payment formula helpful in productivity enhancing. The research outputs should be reflected in the education curriculum and training program. Initiative should be undertaken to develop productivity friendly payment modalities for different sub-sectors and should be disseminated to the industry.

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So a sustainable productivity scheme has to be undertaken in cooperation with the national productivity organization (NPO) and other textile institutions. DOT could be recommended to catalyze NPO & other institutions to work for the industry.

11.2 Quality Improvement

Quality of a product is its all specific attributes and characteristics that satisfactorily meet the purposes of uses. So, quality is neither a static nor a single aspect issue. Since the parameters of quality changes from time to time, Bangladesh PT industry has to follow that course of change to properly address the targeted domestic and international markets. It is the market that dictates the quality parameters, finally.

For improvement of the product quality, Bangladesh PT industry needs to understand the existing quality parameters and should anticipate the future trend of its change, which can be done through regular market monitoring and frequent market evaluation in terms of quality and other relevant issues; imparting more exposure through education and providing practical skill for quality improvement through training, awareness creation through workshop & training are the complementary scheme to enhance the former issues. The government should employ some organizations or, at least, enable DOT to cater this type of service for the interest of Bangladesh PT industry.

The visits of the consultants in the surveyed industrial units and buyers organizations, case studies conducted and the interaction made with the cross-section of the employees have led the team of consultant to believe that for bring real improvement of quality in the PTs effective addressing approach are to be designed for following factors of quality:

Consideration of quality from market feedback

Quality of product at design stage

Selection/use of inputs (raw materials)

Selection & procurement of right technology/machines

Testing/Inspection and Quality Control system

Manufacturing/processing environment

Man with knowledge and skill

Consideration of Quality from Market Feedback: Designing of product quality depends on proper analysis of the quality that the market or buyer demands. Failure to comply with the quality norms is mostly not a careless or avoiding attitude of the entrepreneurs; the cause is rather a capacity oriented issue, in most cases. Often there is lack or deficiency at manufacturers’ end to properly interpret the market quality into manufacturing quality parameters. The lack of systemic quality culture and/or skilled persons happens to be the main reason. So initiatives are needed to be undertaken that enable the industrial units properly understand the essence of modern quality assurance along with modern quality control/management practices. To make this to happen, DOT in collaboration with the PT industry can undertake motivation and quality awareness creation program.

Quality of Product at Design Stage: All subsequent efforts of quality control go in vain when flaws happen in designing & developing the quality parameters at design stage of a product. In Bangladesh, except few large companies, often some mistakes are made at design stage (in particular for new products), which coupled with other causes quality non-conformity resulting supply non-compliances along with dissatisfactions, compensation, replacement, compensation, and even order cancellation. Factory peoples’ further education and training on quality issues could improve this situation. DOT’s educational curriculum should include the issues in regard of these in stronger way. Also DOT in collaboration with NITTRAD can provide initial quality design support to the industry at reasonable costs.

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Proper Selection & Procurement of Inputs (raw materials): Proper selection and procurement of raw material is the pre-condition to obtain a designed product with specified quality. Without the proper fiber material(s), spinners cannot supply weavers or knitters the yarn of demanded quality; without having quality yarns weavers or knitters cannot turnout quality fabrics and similar is the case with dyers/processors who without having quality substrate materials and dyes/chemicals or needed quality water cannot supply RMG industry with the quality inputs.Selection and procurement of exactly needed raw material calls for combined effort of cross-sectional staff of design, operation, testing, purchase and finance departments as interpretation by steps, preparation of effective bid documents & in time procurement, testing of samples and efficient financing -all this has to be done within a specified lead time. DOT and other textile educational institutions should revise their curriculum keeping this point in view. The government and BTMA & BKMEA should inspire the industry to participate more such training that may be conducted by NITTRAD.

Selection of Right Technology/Machines: Selection of right technology is vital to quality formation; compromising solution is mostly rare. In the earlier chapter, a comprehensive discussion has been made with recommendations on possible change of technology in the future and Bangladesh PT industry should have to responsive to that trend. Because of huge financial involvement technology cannot be changed every time; so selection of technology should be based on long term market study and business strategy.

Testing/Inspection and Quality Control system: The UNIDO-EU sponsored survey on needs assessment (conducted by PPMA in 2006) reveals that minority of the PT industries have laboratories with moderately skilled personnel. The majority of the newer spinning mills (31% of all spinning mills) are equipped with modern testing and quality control equipment of European origin. 15% of knitting firms (mostly the composite modern knit units), 12% of weaving units weaving, 12% of fabric processing units, and 6% of yarn dyeing units have testing equipment. Depending on the sub-sectors, some 7-18% surveyed units were reported to have laboratory facilities but without skilled personnel. Huge surveyed PT industry (e.g., 33% spinning, 425 weaving, 44% knitting, 53% fabric processing, and 64% yarn dyeing units) and 60% of the RMG companies have no lab facilities and no knowledge of standard testing. Most of them, unless is not pressurized by the buyers or falls in critical problems, continue avoiding the hassles of testing. However, under any urgency they go to BSTI, NITTRAD, SGS, ITS and other private testing service providers. Many industries (particularly RMG companies) have to send their samples to laboratories in Hong Kong, Germany and elsewhere for testing and accreditation support. Since small and medium scale industry constraints in managing testing equipment, there should be well-equipped, capable, and accredited testing laboratories that can provide support to the PT industry at reasonable cost.

For providing quality control assistance, DOT in cooperation with NITTRAD can undertake project to develop quality control and process control related manual for the modal products, which can be sold to the industry at reasonable costs.

Environment of Manufacturing/Processing Shed: The humidity, temperature, pressure, cleanliness of the shed under which a product is formed or processed often play some roles in quality formation of that product. Textile education and training curriculum of DOT and other concerned intuitions should have augmented focus on the issue. Apart from motivation and awareness creation for the individual PT industries in favor of environmental parameter control, DOT can prepare controlling manual and may disseminate at to the industries at reasonable cost.

Man with Knowledge and Skill: Finally, it is man with the proper knowledge/expertise/experience that brings about every design implemented precisely. The challenge of acceptable quality can be ensured only

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by a sustainable supply of skilled manpower to the industry. DOT has to augment its testing and quality control related curriculum with the changes of the local and international market and train up the graduates with the more trained teachers, modern equipment, and improved knowledge transfer skill. DOT and NITTRAD may find each other complementary in this regard and work together for the industry in cooperation with BTMA & BKMEA.

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In the initial 2 decades of RMG manufacturing and export, Bangladesh RMG and PT industry, by and large produced the basic products, the design of which were readily available. But after 2000, a considerable change took place in the manufacturing pattern. Since then, the share of fashion products in Knitting, Sweater manufacturing and Woven manufacturing started increasing, necessitating demand of fashion fabrics and fashion yarns. Fashion products are more value additive as compared to low priced basic products. This is the vital pulling factor that has been continuously attracting the manufactures and exporters to go for fashion product manufacturing. The problem being faced by the interested manufacturers mostly lie in shortage of design supply and lack of experience. Often individual effort in managing design of PT products become expensive, as the PT producers do not enjoy this assistance in a way the export-oriented RMG manufacturers are getting from the buyers. Moreover, affording such experienced experts becomes difficult mostly for outstanding payment.

This is the reason that only a few will be able to respond the fashion orders, nevertheless fashion products’ demand is globally increasing. So, the most viable way to enable the local PT industry to effectively respond to the order of expert RMG is to assist then with design support and experience sharing by some local institutions. These institutions will develop designs of yarns and fabrics for demand-prone RMG products in the international market. This will cause to enhance diversity of the PT products mixes in the market. In the international market, the supply chain is constraining in sourcing assortments containing fashion yarns of different kinds (e.g. slab years, ICS yarns, Mel large yarns, false twist yarns and various other care and highly lexured yarns). Similar problems persist in managing woven and knit fabrics of eye catching textures. Similar type of problems are with colored and printed fabrics.

The supply chain often has to withdraw or return such orders from Bangladesh because of less effective response from our PT industries. There is a program under the scope of NITTRAD, where a design centre will be created. This design centre should be equipped in such a way that it would be able to develop designs for a wide range of yarns and fabrics having demand for fashion program etc. This design centre, in cooperation with the research & QC staff should also develop production plan for each type of product. And also there should be provisions for sharing experiences and providing counselling in respect of manufacturing of new products. DOT should closely follow this process and share the experience, and then undertake similar type of project in the remote areas, but closer to industrial cluster/belt to offer product diversification support to the industry. For this purpose, the concerned personnel should be trained in home and abroad.

Moreover, from time to time, seminars and product display events will be arranged to create awareness about the benefit of producing new products, particularly the fashion products. The curriculum of DOT and other educational institutions should also include the issues and strategies for product mix development with enhanced training program.

NITTRAD and DOT can prepare manuals of some mostly demanded fashion PT products matching with RMG’s need and can sell those to the industry at reasonable costs.

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Suggestion for undertaking Pragmatic Program to Diversify the PT Product Mixes Matching with the Need of RMG

In view of analyzing the primary data obtained from the field survey, secondary information revealed from the reports/publications and case study conducted by the Consultants, the team concludes and recommends the following:

Side by side enhancing the effort to cater the needs of the export oriented RMG industry, Bangladesh PT should be augmented to meet the domestic needs of apparels, hometextile & furnishing fabrics and technical textiles.

To create the needed PT capacity in order to address huge unmet gap of demand-supply both for local and export purposes, a mammoth investment will be required which cannot fully be managed locally. Bangladesh PT sector is also suffering from shortage of loan from the scheduled Bank. So, a separate fund for upgardation of textile industry should be created by GOB so that Bangladesh PT & RMG sector can have the needed number of industry established under the loan facility with the interest rate not over than 8% (preferably at 6%).

To create the needed PT capacity in order to address huge unmet gap of demand-supply both for local and export purposes, a mammoth investment will be required which cannot fully be managed locally. So, the join-venture (JV) projects as well as direct foreign investments (FDI) are to be encouraged, apart from encouraging the local investors.

To encourage the local investors and to attract JV or FDI, Bangladesh will have to create necessary infrastructure ensuring uninterrupted supply of gas, water and electricity, good communication system, centralized efficient treatment plant (ETP) logistics and human resource support. For this reason, more textile villages or facilities like EPZ will have to be built up along with up-gradation of existing institutions like DOT engaged in catering skilled human resources for the PT & RMG industry.

JV & FDI blessed business flourishes in a place where there are securities and peaces (free of political and religious turmoil) in addition to good provisions for accommodations and recreations (good hotels, motels, restaurants, beach resorts, etc.) and healthcare facilities (high quality clinics, hospitals and dispensaries). So, the investment climate friendly factors are to be properly addressed for PT & other business development by the government, mostly.

Bangladesh does not have domestic supply of textile fibers, apart from tiny supply of domestic cotton mostly used by the non-exporting PT industry. But Bangladesh PT is mostly a cotton based industry. So for the sustainable development of Bangladesh PT industry, the efforts of cotton development board to increase the production of local cotton has to be coupled by the government and the stakeholders of the PT industries, jointly. In the analytical way, sericulture development activity will also be supported.

Over the last few years, an increasing effort for recycling of textiles is being pronounced in the informal sector. The small and cottage grade units at Tongi and Narayanganj are turning out fiber from garment waste. On the other hand, crude filaments are being drawn from waste plastic products in the informal sector by many cottage grade industries. But the efforts are suffering from proper knowledge, expertise and investment. The recycling

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PT Development Recommendations & the Implementation Roadmap

issue has to be examined properly to explore out real potentiality and scope of investment for a sustainable fibre supply to the PT industry.

One of the biggest factors that have triggered the growth of the Chinese & Indian PT industry is the domestic availability of the textiles machinery. Globally reputed textiles machinery manufacturers have set up units in China & India, and have developed models which are suitable to their industry. Bangladesh has to encourage the global manufacturers to set up similar units in the country to meet the requirement of the Bangladesh PT industry.

Bangladesh domestic machinery manufacturers (only a few fabricating unlicensed crude products) should be enabled to enter into joint venture and strategic alliances with global manufacturers to take advantage of the technology transfer.

Handloom should be upgraded mechanically for enhanced productivity. And also to have more product flexibility, handloom should be attached with the modern electronic attachments (jacquard and dobby). For this, a coordinated research program should be undertaken by Bangladesh Handloom Board jointly with DOT involving textile colleges & universities, mechanical department of BUET, and Bangladesh Machine Tools Factory (BMTF).

Effort for cost reduction is a continuous process. Apart from low interest rate and low equity, there are other cost factors too. Rather targeting all at a time, initially it is wise to consider some prioritised cost benchmarks. For example, Bangladesh can initially target India & Pakistan’s those costs that are higher than ours as immediate benchmark, then gradually the others. So, DOT in collaboration with other institutions should plan to undertake such comparative product cost research program and thereby help the industry by information support.

Bangladesh PT industry, not forgetting about availability of cheap labour and issues of employment, should adopt a balanced approach for high productive technology with an objective to enhance space productivity, bearing in the mind that the land is going to be very precious all through Bangladesh. For example, using of rotor spinning and high productive looms economizes space. Similarly, the weaving sector should be encouraged to use high productive loom and newly developed electronic attachments for wider diversity of the product mixes.

The processing houses should be encouraged to adopt the technologies that consume less water & less energy and thereby reduce pollution level & effluent treatment cost. Reduction of failure is the cause of increased reprocessing. And increasing effluents. According to the concerned experts, the reprocessing in the country is in excess of 30%. The industry should be given technical assistance to drastically lower down the reprocessing.

Bangladesh PT sector has 3 advantages over many of its competitors including India, Pakistan and Vietnam in terms of cheap labour per operative hour (of course not cheap in terms of labour productivity), cheap gas & electricity price and cheap cost of water sourcing. Unless Bangladesh changes technological quantum, necessary measures are to be taken so that the PT industry can take advantage of getting supply of gas or power at cheaper prices. On the other hand, its labour productivity has to be increased.

Design support is essential for the PT industry to add more value through turning out the fashion yarns and fashion fabrics of lucrative textures. The Design Center of NITTRAD should be developed in such a way that it will develop PT products’ designs (potential for local and international market) and will disseminate at reasonable costs to the industry.

Because of considerable cost involvement, it is difficult (if not impossible) for small and medium scale PT industry units to individually run an efficient product planning department, responsive to quality assurance (QA). So, a product development and product display centre should be established that will continuously develop production plan for the products having demand in the market as well as that of new products having market potentiality. The production plan along with the technological regimentations will be disseminated to the industries at reasonable costs.

For long term sustainability, there is now way to compromise with quality- neither in the local market nor in the international market. Since quality is a dynamic issue changing parameters from time to time, the small and medium scale PT industry may not follow the course properly. Therefore, a well coordinated quality support program should be operated that can consult and counsel any quality related issues at prices affordable by the

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industry. DOT could be engineered to voluntarily provide quality support service (QSS) with its skilled human resources to the industry.

Bangladesh PT should enjoy research services from a specialized institution like NITTRAD that should have substantial reach capacity. DOT and other textile colleges and universities can be collaborative with NITTRAD with their resources and capacities.

It is worthwhile remembering that Bangladesh labour is cheap in terms of operative hour but not in terms of productivity than India, not to speak other leading PT countries. Apart from increasing machine productivity, the overall value added productivity has to be increased by enhancing labour productivity and design support. So a sustainable productivity scheme has to be undertaken in cooperation with the national productivity organization (NPO) and other textile institutions. DOT could be recommended to catalyze NPO & other institutions to work for the industry.

The issues concerning design, product planning, quality, productivity or research cannot be addressed properly without the involvement of educated and experienced experts. The activities of the above mentioned textile institutions and the performance of PT units largely depend on sustainable supply of skilled human resources starting from operators to supervisory manpower to techno-managerial and marketing staff. So, HRD and training program should be enhanced. DOT is imparting skill training through vocational & diploma level education/training and preparing higher technical cadre of B.Sc. level too for the industry. Therefore, continuous evaluation of DOT program and scheme for development of its institutional capacity should be undertaken.

Regular upgrading of sectoral information by upgrading the database of DOT every year.

In order to ensure the future industrial growth, the government has to decide which would be the most cost-effective and sustainable sources of electricity generation. Talking about solar energy is also far apart from the reality, at least for industrial sector because of its unusual high cost of generation. And this cost is not believed to come down to economic rate at least within next 10 years, the experts believe. So, the last option remains in hand is to generate power through nuclear facility. But Bangladesh has not yet taken any meaningful step in regard of this. Predicting the future growth the government should make some gas reserve provision for PT & RMG industry only so that these industries suddenly do not collapse for lack of gas/power. Side by side the government should undertake nuclear power project without further loss of time.

Time-bound Action Plan/Road Map for Implementation of PT development Recommendations Made under the Survey

Implementation of the above mentioned recommendations made under the auspices of the survey does not depend on the single party effort. All concerned governmental bodies and the stakeholders have to be agreed on the essence of these recommendations, and joint efforts have to be made by them under a coordinated initiative. What DOT will design in respect of this will have to go through the parent organization (MOT & J). So, the MOT & J could be requested to form a catalyst group by taking members from DOT and MOT & J, who would be encouraged to coordinate the efforts in respect of implementation of the above PT development recommendations.

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Below is provided with a time-bound action plan in summarized form, which later could be elaborated subject to approval of the Ministry.

Sl. No.

Actions Implementation Period

(From- to)

Months of the year 2009-10

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

01 Design detailed time-bound action plan, based on the survey recommendation, to implement the survey recommendations specifying 5W&1H approach (what should be done why should be done, who should do it where & when and How). The action plan shall be submitted to the Ministry of Textiles & Jute (MOT& J) for approval, green signal and necessary assistance.

by March 2009

02 Formation of ‘Catalyst Group’, taking members from all concerned parties.

01 April to 15 April 2009

03 Dialogues with the stakeholders, financial institutions, educational and training institutions, NBR, EPB, BOI and other concerned parties to discuss as how these recommendations could be implemented and what modifications of the recommendation are to be made for the interest of time bound implementation.

16 April to 31 May 2009

04 Incorporating the outputs of the dialogue in the recommendations and the fixing up implementation period of each recommendation. Submission of the Report with fresh strategy to the Ministry for approval.

01June to 30 June 2009

05 Sending the Ministry approved reports to the concerned Departments and Associations of the stakeholders for having comments from them.

01July to 31 July 2009

06 National Seminar to discuss the recommendations and strategies of the Catalyst Group and responsibilities – who should perform what, when and how.

01 August to 15 August 2009

07 Revision of the recommendations and re-fixing implementation strategies and time with the outcomes of the Seminar.

16 August to 31 August 2009

08 Submission of the revised recommendations, along with implementation strategy and logical framework to the Ministry to sent to the partners involved in the implementation process.

01 September to 30 September 2009

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textile final report 300709

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